Today you finally get what you’ve anxiously been awaiting: The Tax Cuts and Jobs Act (we’re excited, too).
Paul has been talking about how tax reform will help middle- and lower-income earners, whether it’s in Massachusetts, Oregon, Pennsylvania, or Washington. When Paul meets with his employers, hardworking taxpayers tell him that their taxes are too high, filing their taxes is too complicated, and the current code punishes businesses of all sizes who make things in America.
That could soon all change with the introduction of the Tax Cuts and Jobs Act. With this bill, a typical middle-income family of four, earning $59,000 (the median household income), will receive a $1,182 tax cut. This bill will also:
- Lower individual tax rates for low- and middle-income Americans to 0%, 12%, 25%, and 35% so people can keep more of the money they earn throughout their lives and maintains the 39.6% rate for high-income Americans;
- Significantly increase the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples;
- Keep retirement savings options such as 401(k)s and Individual Retirement Accounts unchanged so Americans can continue to save for their future;
- Continue the deduction for charitable contributions so people can continue to donate to their local church, charity, or community organization and preserve the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000 – providing tax relief to current and aspiring homeowners.
And for businesses like the many Paul has toured in recent months, the Tax Cuts and Jobs Act will:
- Reduce the tax rate on the hard-earned business income of Main Street job creators to no more than 25% – the lowest tax rate on small business income since World War II.
- Establish strong safeguards to distinguish between individual wage income and “pass-through” business income so Main Street tax relief goes to the local job creators it was designed to help most.
- Allow businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers – unleashing the growth of jobs, productivity, and paychecks.
Earlier this week, Paul toured Royal Basket Trucks and HyPro and met with his employers in Wisconsin’s First District to talk about how the Tax Cuts and Jobs Act will improve their lives:
Paul greets an employee at Royal Basket Trucks in Darien, WI
Paul tours HyPro in Waterford, WI