Handel Issues Statement on House Tax Cut Proposal, the Tax Cuts & Jobs Act
WASHINGTON, DC - U.S. Representative Karen Handel issued the following statement after the House of Representatives unveiled its tax cut and simplification proposal today.
"Today’s tax cut and simplification plan offers the most sweeping modernization of our tax code in three decades," Rep. Handel said. "The plan prioritizes working Americans and families, lowering tax rates, nearly doubling the standard deduction, and expanding the child tax credit. Under the plan, $24,000 in income will be tax free for a married couple."
The House's tax reform proposal maintains the current rate for top earners - 39.6% - while replacing the current tax rates with four new brackets - 0%, 12%, 25%, and 35%. The increase of the child tax credit from $1,000 to $1,600 includes an additional $300 deduction for each parent or non-child dependent as part of a consolidated family tax credit.
"This tax cut plan also lowers rates for America’s small businesses to 25%, the lowest rates since World War II," Rep. Handel continued.
Finally, this plan retains protections for 401(k) and retirement plan contributions. It maintains mortgage interest deductions for the first $500,000 on the purchase of a home, and allows people to write off $10,000 worth of state and local property taxes every year.
“While some will want to focus on narrow portions of the bill and special tax breaks that are being eliminated, the goal of this bill is to accelerate economic growth by providing middle class tax relief, lowering the rates on small businesses, incentivizing capital investment, and creating a fairer, simpler tax structure," Rep. Handel continued. "I look forward to passing tax cuts and tax simplification that will be transformative to the American economy and American competitiveness.”