Cornyn on Passage of Historic Tax Relief
by John Cornyn on December 20, 2017 at 2:26 PM
Today I spoke on the Senate’s passage of the Tax Cuts and Jobs Act, the first comprehensive tax reform in more than three decades. This legislation will increase the child tax credit, reduce taxes for middle-income Americans, and double the standard deduction. Excerpts of my remarks are below, and video is here.
This bill will dramatically reduce taxes on American families and incentivize the creation of new jobs. This bill is a major victory for all Americans who want to know that Washington has their best interests at heart, and it does exactly what we told voters we would do in 2016.
We're delivering tax reform in a way that is real, comprehensive, and substantial, and we're doing it through what we usually refer to as regular order here in the Senate.
This tax reform may not bear the ribbons and bows of a Christmas present, but the men and women who are trying to make ends meet will benefit from lower taxes, bigger paychecks, and a resurgent economy that will produce more jobs and better opportunities.
American families need more take-home pay. They need the higher wages. They need greater job opportunities. And they need a competitive economy and the benefits that brings. American families should not have to settle for anything less, and we'll make sure they don't.
I can't wait to hand deliver to the President's desk this important bill this week and for him to sign it into the law. We will all benefit from passage of this Tax Cuts and Jobs Act.
What the Bill Means for Taxpayers:
For a Typical Family of Four:
· The typical family of four earning the median family income of $73,000 will receive a tax cut of $2,058, a reduction of nearly 58 percent.
For a Single Parent Earning $41,000 per Year:
· A single parent with one child and an annual income of $41,000 will receive a tax cut of $1,304.50, a reduction of nearly 73 percent.
For Married Small Business Owners with an Income of $100,000:
· A married couple who are small business owners and earn $100,000 per year will receive a tax cut of $2,603.50, a reduction of nearly 24 percent.
The Tax Cuts and Jobs Act:
Puts Money Back in Texans’ Pockets:
· This bill lowers individual tax rates to 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
· It doubles the standard deduction so that the first $12,000 earned by an individual and the first $24,000 earned by a married couple are not taxed at all.
Helps Texas Families:
· This bill doubles the Child Tax Credit from $1,000 to $2,000 to help single and married parents with the cost of raising children. This credit is fully refundable up to $1,400.
· It preserves the Adoption Tax Credit and the Child and Dependent Care Tax Credit to help families open their homes to adopted children and care for older dependents who need support.
Promotes Education and Charitable Giving:
· This bill helps families and individuals save for education by allowing Texans to use 529 accounts to save for elementary, secondary, and higher education.
· It continues to support graduate students with the exemption of the value of reduced tuition from taxes.
· It preserves the deduction for charitable donations to continue to incentivize and make it easier for families to give to charity.
Lightens the Burden of Health Care Costs:
· This bill expands the medical expense deduction for medical expenses exceeding 7.5 percent of adjusted gross income, and rising to 10 percent in 2019.
· It repeals Obamacare’s individual mandate so families aren’t penalized for not purchasing health care they don’t want or can’t afford.
Preserves the Property Tax Deduction:
· This bill allows taxpayers to continue to write off up to $10,000 in state and local taxes – including property taxes and sales taxes for Texans.