WASHINGTON – Today, Congressman James Comer (KY-01) voted for the final version of the Tax Cuts and Jobs Act (H.R. 1), which will lower taxes across the board for hard-working Kentucky families and job creators. Under the newly reformed system, an American family of four would save $2,059. Additionally, the bill will reduce the burden on small businesses and lower our corporate tax rates to levels competitive with the rest of the world.
“For the first time in more than three decades, Washington is poised to enact meaningful tax reform that puts more money back in the pockets of American families and businesses,” Comer said. “I am proud to support this critical part of President Trump’s pro-growth agenda that will fulfill this promise to the American people who have struggled under the weight of Washington bureaucrats for far too long.”
Highlights of the Tax Cuts and Jobs Act conference report include:
- Lowers the individual tax rates to 10%, 12%, 22%, 24%, 32%, 35% and 37%.
- Nearly doubles the standard deduction from the current $6,500 for individuals and $13,000 for married couples to $12,000 and $24,000, respectively, meaning less of your income is subject to federal taxes.
- Eliminates the Obamacare Individual Mandate that taxed Americans who chose not or could not afford health insurance.
- Helps families and caregivers by preserving the Adoption Tax Credit, keeping the Child and Dependent Care Tax Credit, doubling the Child Tax Credit to $2,000, and giving families flexibility to use 529 savings accounts for elementary and secondary education in addition to college expenses.
- Supports the American Dream of homeownership by preserving the Mortgage Interest Deduction up to $750,000 for homebuyers taking out a new mortgage.
- Promotes small businesses, a driver of economic growth in Kentucky’s First District, by providing a 20% deduction on the first $315,000 of joint income for S corporations, partnerships, LLCs and sole proprietorships. The bill also allows for the immediate expensing of investments in new equipment and doubles the Death Tax exemption, provisions critical to Kentucky farmers and family-owned businesses who want to grow their business and pass it down to future generations.
- Provides relief for American companies currently facing a 35% tax rate, the highest in the industrialized world, by lowering the corporate tax rate to 21% to spur hiring and investment at home.