The U.S. House of Representatives passed the conference report of H.R. 1, the tax reform bill, by a vote of 224 to 201, which the Senate also passed. The President signed this bill into law on Friday, December 22, 2017. Most changes go into effect for tax years after 2017 and expire in tax years after 2025.
The bill is a great step forward for our economy and our country. It is time that we let hardworking Americans keep more of the money they earn. The bill is not perfect. I am disappointed that the Death Tax is not completely abolished and that the end product is not as simple as I would like or had hoped. But this tax reform bill is our chance to lower taxes, boost the economy, and bring jobs back to America.
Highlights of the tax bill:
Family making median income of $73,000 will see a tax cut of $2,059 according to House and Senate tax committees;
Lowers individual tax rates for Americans to 10, 12, 22, 24, 32, 35, and 37 percent;
Nearly doubles the standard deduction and eliminates special interest deductions;
Expands and increases the Child Tax Credit and preserves the Child and Dependent Care Credit and the Adoption Tax Credit;
Preserves the mortgage interest deduction for existing mortgages and maintains the mortgage interest deduction for new homes up to $750,000;
Allows state and local taxes to be deducted up to $10,000, which puts all states on a more even playing field;
Retains retirement savings options such as 401(k)s and Individual Retirement Accounts (IRAs);
Eliminates the Obamacare individual mandate penalty beginning January 1, 2019;
Preserves and temporarily expands the medical expense deduction;
Doubles the Death Tax exemption;
Lowers the corporate tax rate to 21 percent; and
Offers a new 20 percent tax deduction to small and family-owned pass-through businesses with joint incomes below $315,000.
This tax bill means that families will benefit from a healthier economy, from more jobs, and from a high quality of life created by putting Americans on a more level playing field with our foreign competitors.