RE: Tax Bill
From John Culberson's letter:
"Dear Neighbor,
Today, Congress passed the first real, meaningful tax reform in 31 years. Because of this landmark legislation, Texans and American families will see an increase in their take home pay in January. American companies will immediately be more competitive in the world market, and thousands of jobs and billions of dollars will return to the United States. This is a pivotal moment in the economic history of our country.
Now, the final bill moves forward to be signed by President Donald Trump.
Thank you to all who continue to reach out to my office with your support, questions, comments and concerns regarding this legislation. I hear you and value your feedback.
The Tax Cuts and Jobs Act will allow you to keep more of your hard-earned money, meaning Washington will keep less of your paycheck. In fact, the typical American family of four making $73,000 will receive an $2,059 tax cut.
Here are some important policy highlights and what they mean for Texans:
Supports Texans Affected by Hurricane Harvey
As I continue to work across the aisle with my colleagues and state and local officials to ensure Texas has the resources it needs to recover from Hurricane Harvey, I’m encouraged to share with you that tax breaks for hurricane victims will be preserved in the Tax Cuts and Jobs Act. The personal casualty loss will be easier to deduct, charitable giving will be encouraged and, if needed, penalty-free access to retirement funds will be available to help us through this emergency.
Helps Individuals and Families
The Tax Cuts and Job Act lowers individual taxes and sets the rates at 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37% so people can keep more of their hard-earned money.
EXAMPLES:
A family of four with income of around $73,000 (median family income) will see a tax cut of more than $2,000.
A single parent with one child earning $41,000 will see a tax cut of more than $1,300.
A couple earning $100,000, with $60,000 from wages, $25,000 in compensation from their non-corporate business, and $15,000 of business income, will see a tax cut of more than $2,600.
Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,500 for individuals to $12,000 and from 13,000 for families to $24,000.
Continues to allow people to write off the cost of state and local taxes – up to $10,000. Gives individuals and families the ability to deduct property taxes and income – or sales – taxes to best fit their unique circumstances.
Provides immediate relief from the Death Tax and gift tax by doubling the amount of the current exemption to reduce uncertainty and costs for many family-owned farms and businesses when they pass down their life’s work to the next generation.
Eliminates Obamacare’s individual mandate penalty tax – providing families with much-needed relief and flexibility to buy the health care that’s right for them if they choose.
Preserves the mortgage interest deduction – providing tax relief to current and aspiring homeowners. For all homeowners with existing mortgages, there will be no change to the current mortgage interest deduction.
For homeowners with new mortgages on a first or second home, the home mortgage interest deduction will be available up to $750,000.
Assists Jobs Creators of All Sizes
Starting on January 1, 2018, the corporate tax rate will drop to 21% - down from 35%, which is the highest in the industrialized world – the largest reduction in the U.S. corporate tax rate in our nation’s history.
Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers – unleashing growth of jobs, productivity, and paychecks.
Protects the ability of small businesses to write off interest on loans, helping these Main Street entrepreneurs start or expand a business, hire workers, and increase paychecks.
Preserves important elements of the existing business tax system, including: Retaining the low-income housing tax credit that encourages businesses to invest in affordable housing so families, individuals, and seniors can find a safe and comfortable place to call home.
Preserves the Research & Development Tax Credit that encourages our businesses and workers to develop cutting-edge “Made in America” products and services.
Retaining the tax-preferred status of private-activity bonds that are used to finance valuable infrastructure projects.
Eliminates the Corporate Alternative Minimum Tax, thereby lowering taxes and eliminating confusion and uncertainty so American job creators can focus on growing their business and hiring more workers, rather than on burdensome paperwork.
Modernizes our international tax system so America’s global businesses will no longer be held back by an outdated “worldwide” tax system that results in double taxation for many of our nation’s job creators.
Makes it easier for American businesses to bring home foreign earnings to invest in growing jobs and paychecks in our local communities.
Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad.
Simplifies Tax Code
Dramatically simplifies the code, 90% of Americans will be able to file their taxes on a form the size of a postcard. Gone will be the days of expensive accounts or costly software to file your taxes.
Expands Child Tax Credit
Expands the Child Tax Credit from $1,000 to $2,000 for single filers and married couples to help parents with the cost of raising children. The tax credit is fully refundable up to $1,400 and begins to phase-out for families making over $400,000. Parents must provide a child’s valid Social Security Number in order to receive this credit.
Preserving the Child and Dependent Care Tax Credit to help families care for their children and older dependents such as a disabled grandparent who may need additional support.
Preserving the Adoption Tax Credit so parents can continue to receive additional tax relief as they open their hearts and homes to an adopted child.
Protects Your Retirement Savings
The House bill does not affect your ability to contribute to tax advantaged retirement accounts like 401(k)s and Individual Retirement Accounts.
You can read more information on how the Tax Cuts and Jobs Act will help you here and get a list of Myths vs. Facts on Tax Reform here. For the full legislative text of the House bill, please click here. "
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