The Tax Cuts and Jobs Act will deliver real tax relief to Americans across the country – especially low- and middle-income Americans who have been struggling for far too long to earn a raise and get ahead. With this bill, a typical middle-income family of four, earning $59,000 (the median household income), will receive a $1,182 tax cut.
Lowers individual tax rates for low- and middle-income Americans
to Zero, 12%, 25%, and 35% so people can keep more of the money they earn throughout their lives, and continues to maintain 39.6% for Americans who make more than 1 million or more.
Significantly increases 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.
Eliminates special-interest deductions
that increase rates and complicate Americans’ taxes – so an individual or family can file their taxes on a form as simple as a postcard.
Takes action to support American families
by expanding and enhancing important family-focused tax benefits
Establishing a new Family Credit, which includes expanding the Child Tax Credit
from $1,000 to $1,600 to help parents with the cost of raising children, and providing a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses.
Preserving the Child and Dependent Care Tax Credit
to help families care for their children and older dependents such as a disabled grandparent who may need additional support.
Reduces 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.
Lowers the corporate tax rate to 20%
– down from 35%, which today is the highest in the industrialized world – the largest reduction in the U.S. corporate tax rate in our nation’s history.
Learn more about the plan here: https://waysandmeans.house.gov/taxreform/#the-plan
