Weekly Update: The Worst is Over
By Congressman Rob Wittman
April 21, 2018
The worst is over. This week was the last time that taxpayers will ever have to deal with the old, broken tax code. This broken tax code has been weighing down our economy, holding America back from reaching its potential. As we bid farewell to this 30-year-old tax code, I think it is important to highlight the ways our new tax code, created under the Tax Cuts and Jobs Act, will benefit Virginia’s First District.
Next year there is so much to look forward to. First, there will be lower tax rates for Americans at all income levels. Virginians in every community will be able to keep more of their hard-earned money to save or spend as they see fit. The new code will increase the standard deduction to $12,000 for individuals and $24,000 for married couples – nearly double that which was available under the old tax code. This will protect more of every paycheck from taxes and make tax filing easier. The higher standard deduction is also important to retirees in the First District.
A large percentage of older taxpayers do not itemize, and normally claim the standard deduction. Therefore, those taxpayers are going to see major relief, but the good news doesn’t stop there. Single filers over 65 can claim an additional $1,600 and married filers over 65 can claim an additional $2,600.
The new code will also help Virginian families. Starting next year, the Child Tax Credit doubles from $1,000 to $2,000. This credit will be available to more families across the country as they deal with the increasing costs of raising a family. In addition, it preserves the Child and Dependent Care Tax Credit and Adoption Tax Credit. The new tax law also improves saving options for education by allowing families to use 529 accounts to save for elementary, secondary, and higher education – whether it’s college or a vocational school.
Starting now, families won’t have to dread filling out tax forms under the old, overly complex tax code only to be unsure if they will receive a refund. Thanks to the Tax Cuts and Jobs Act, nearly 9 out of 10 Americans will be able to file their taxes in a simple, straightforward way. The IRS has also released a
2018 withholding calculator so you can determine the appropriate withholding amount for you!
Millions of Americans have already seen tax cuts at work. I’ve heard countless stories from families and small business across our district about how this legislation is putting more money in their pocket. Four million workers and counting, including many in the First District, are receiving bonuses, pay raises, or expanded benefits – all contributing to getting our economy back on track.
According to the National Federation of Independent Business, for the first time in 35 years, the fewest number of small business owners have reported that high taxes were their number one business problem.
As you can tell, all things related to taxes are going to look positively moving forward. Finally, it is out with the old and in with the new!
