Weekly Update: One Step Closer to Tax Relief
By Rob Wittman
November 18, 2017
The House has done its part, and completed the first step towards keeping our promise to the Nation. Since America’s founding, the First District of Virginia, my home, has been a stronghold for hardworking men and women who work hard, raise their families, and help shape what we now consider the American Dream.
Each day Congress is in session I commute from Washington back to Montross, Virginia, and I hear from people back home that they are struggling. Families are living paycheck to paycheck, farmers can’t pass down their legacy without paying Uncle Sam, and far too many small businesses are kept from expanding and creating jobs. This cannot continue.
This week, the House passed the
Tax Cuts and Jobs Act. This makes the tax code much simpler for working-class Americans, while simultaneously protecting more of their hard-earned paychecks. I was proud to cast my
vote in favor of a plan that means bigger paychecks, fairer taxes, and more jobs for my constituents.
This pro-family, pro-growth plan for tax reform was inspired by hardworking men and women across the country who are struggling under our current tax code. And as this tax reform process continues, I will remain committed to fighting for American families and small businesses.
Tax relief helps Americans at every income level.
Relief helps the family of four who makes less than $60,000 a year - a situation a lot of Virginians are in. With a lower rate, a significantly higher standard deduction, an enhanced Child Tax Credit, and the new Family Credit, this family will reduce their total tax bill by almost $1200. That's more savings that can go towards anything they wish - maybe it is a new refrigerator, maybe it’s paying the bills, or maybe it's saving for their child’s college tuition.
Moreover, it helps our small and medium-sized businesses. Under today’s broken tax code, small businesses are taxed at the same individual rates as wages, making it more difficult for Main Street job creators to invest and expand. With the Tax Cuts and Jobs Act, small businesses will see much-needed tax relief because they will now be taxed at a low maximum rate of 25%; This will reduce their tax bills by thousands and thousands of dollars. That money can then be reinvested into growing that business; therefore, providing new jobs to the community. The bill even includes a new, low tax rate of 9% for businesses earning less than $75,000 in income to help the startups that fuel innovation and job creation in communities across the Commonwealth.
But what about how the Tax Cuts and Jobs Act impact Virginia’s First District? Check out these numbers:
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59,094: That’s how many families in VA-01 currently claim the child tax credit. Under the Tax Cuts and Jobs Act, the child tax credit increases by $600 per child.
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44,717: The number of taxpayers in VA-01 who have small business income. The Tax Cuts and Jobs Act reduces the tax rate on the hard-earned business income of Main Street job creators to no more than 25%.
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9,970: The number of taxpayers in VA-01 that are effected by the Alternative Minimum Tax (AMT). The Tax Cuts and Jobs Act repeals the AMT so taxpayers won’t have to calculate their taxes twice each year and pay the higher amount.
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149,325: Hundreds of thousands of taxpayers in VA-01 itemize their deductions. The Tax Cuts and Jobs Act simplifies the tax code so 9 in 10 people will be able to file their taxes on a postcard.
This tax-relief plan will give our economy the boost it so desperately needs, by simplifying our broken tax code and putting more money back in the pockets of hard-working Americans. This House has done its job, now I urge the Senate to move this legislation as quickly as possible so that we can start working out our issues in conference. We cannot continue to burden our families and job creators; we must instead unleash America’s full potential.
