WASHINGTON – To grow the nation’s economy and to provide a tax code that is more simple, fair and less costly to comply with for all Americans, Idaho Senator Mike Crapo, a senior member of the Senate Finance Committee, today voted in favor of the Tax Cuts and Jobs Act.
“The tax reform legislation passed by Congress will produce growth not seen in generations, giving Americans access to higher wages, greater job opportunities and a more vibrant economy,” said Crapo. “Idahoans in every income group will see a reduction in their tax burdens, with the largest percentage reductions benefiting those in lower and middle-income tax categories. Further, a typical family of four is projected to receive a $2,059 tax cut, and, as a result of increasing the standard deduction and simplifying other portions of the code, many lower and middle income families will no longer have to save their receipts and spend many hours and hundreds of dollars every year to pay their taxes. This proposal will strengthen our economic competitiveness by creating a more competitive tax code that enables capital formation resulting in new companies being formed, staying here and expanding job opportunities.”
The Tax Cuts and Jobs include the following highlights:
Lowers individual tax rates to 10, 12, 22, 24, 32, 35 and 37 percent;
Increases the Standard Deduction—from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples filing jointly;
Establishes a new Family Credit—which includes expanding the Child Tax Credit from $1,000 to $2,000 for each child and providing new credits of $500 each for other dependents;
Preserves the Adoption Tax Credit;
Preserves the deduction for charitable contributions;
Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes for interest on up to $750,000 of mortgage principal;
Continues to allow people to write off the cost of state and local taxes up to $10,000 for both property and income (or sales) taxes;
Thresholds for the Alternative Minimum Tax are increased to $1 million for married couples and $500,000 for individuals;
Eliminates the Obamacare individual mandate penalty beginning January 1, 2019;
Provides immediate relief from the Estate Tax by doubling the exemption amount; and
Provides support for graduate students by continuing to reduce the value of reduced tuition from taxes.
The measure will now go to the President who is expected to sign the legislation. When signed into law, many of the policy proposals in the Tax Cuts and Jobs Act will take effect January 1, 2018. More details about the Tax Cuts and Jobs Act can be found here online and the full text of the bill can be found here.