Tax Cuts & Jobs Act in Year Three: Unleashing Economic Growth is Key to Recovery
This month marks the three-year anniversary of the Tax Cuts and Jobs Act (TCJA) that aided America’s middle class, strengthened the economy, and made America more competitive globally. After years of the slow Obama-Biden economic recovery, America’s economic growth moved into high gear with passage of TCJA, leading to more jobs, higher wages, and a stronger America.
Now, with the successful development and distribution of the coronavirus vaccine, these policies will be crucial to continuing American growth by allowing families and main street businesses the flexibility and resources they need.
The first rewrite of our nation’s tax code in over 30 years was led by House Republicans. As the Constitution states: “All bills for raising revenue shall originate in the House of Representatives.”
Just three years ago this week, the House-Senate Conference Committee signed the conference report for this historic legislation, with me as Conference Committee Chairman filing the conference report in the House—allowing the bill to move forward in Congress.
Under my leadership and House Ways and Means Republicans, our conference laid out a bold vision for what our new tax code should look like. As I said at a speech delivered at the Reagan Ranch:
“With your help, America, we can close the special-interest loopholes. We can lower tax rates for American families and job creators. We can vault America from nearly dead last among our global competitors back into the lead pack with one of the most pro-growth, pro-jobs tax codes on the planet.”
House Republicans were able to deliver just that.
Thanks to House Republican Leadership, the final conference report for the TCJA included these provisions:
- Lower Tax Rates Across the Board for All Americans.
- Nearly Doubled Standard Deduction.
- Doubled Child Tax Credit.
- Eliminated the Alternative Minimum Tax for all but Millionaires and Billionaires.
- Capped the State & Local Tax Deduction.
- Lower Corporate Tax Rate.
- Created a New Pass-Through Deduction for Small Businesses.
- Full and Immediate Expensing for Business Investments.
- Eliminated the Corporate Alternative Minimum Tax.
- Reformed Our International Tax Rules.
- Repealed Many Special Interest Tax Provisions.
- Improves Savings Vehicles for Education (529s for elementary, secondary, and higher education).
- Made it easier for American businesses to bring home foreign earnings.
- Prevents American jobs, headquarters, and research from moving overseas.
The results? A booming economy for families and small businesses, and a foundation for our economy to continue rebuilding following the COVID-19 pandemic.
The TCJA led to More Jobs and Investments.
Our new tax code provided fairer and lower taxes for workers.
And it resulted in Bigger Paychecks for Americans nationwide.
Over the next week, Ways and Means Republicans will reflect on the legacy of this new tax code and highlight how, using these same pro-growth, low-tax principles, we can launch America back into the most competitive economy in the world.