Buchanan Backs Middle-Class Tax Cut
WASHINGTON — Congressman Vern Buchanan, a senior member of the tax-writing House Ways and Means Committee, voted today to reduce taxes on middle-class families and small businesses.
“This bill provides the tax relief middle-class families and small business owners have needed for a long time,” Buchanan said. “The average family of four will receive a tax cut of nearly $1,200 a year while small businesses will see a tax reduction that allows them to expand and create good-paying jobs.
The bill passed the House by a vote of 227-205 and now goes to the Senate for consideration.
An independent analysis by the nonpartisan Tax Foundation estimates the bill would create one million new jobs and grow the economy by nearly 4 percent – a growth rate the country has not experienced since 2000.
The National Federation for Independent Business (NFIB) endorsed the legislation and praised Buchanan’s role in ensuring that small businesses get tax relief under the bill.
“As the voice of America’s small businesses, NFIB commends Congressman Buchanan for his leadership on pro-growth tax reform,” said Juanita Duggan, NFIB President & CEO. “More specifically, we appreciate his support for the Main Street businesses that stand to benefit from this important legislation.”
The Tax Cuts and Jobs Act (H.R. 1) provides small businesses with significant tax relief by establishing a new 9 percent tax rate on the first $75,000 in income earned by small businesses under $150,000 a year. Currently, some small businesses face a tax rate as high as 39.6 percent. This change will allow American manufacturers, retailers and other small businesses to keep more of their earnings, expand and create jobs.
Highlights of the Tax Cuts and Jobs Act include:
- Doubles the standard deduction: Allows families to keep more of their own money by doubling the size of the standard deduction from $6,350 to 12,000 for individuals and $12,700 to 24,000 for married couples.
- Expands Family Tax Credits: Expands the current Tax Child Tax Credit from $1,000 to $1,600 to help parents with the cost of raising children. The bill also establishes a new Family Flexibility Credit of $300 for each parent and non-child dependent to help all families with everyday expenses.
- Simplifies the Tax Code: Americans spend billions of hours each year complying with a tax code that is five times as long as the King James Bible. This bill will allow 9 out of 10 Americans to file their taxes on a new form the size of a postcard.
Buchanan also said he is confident the House and Senate will come together and approve a final tax relief package in the weeks ahead. The Senate Finance Committee is debating its version of the tax bill, which is expected to be considered by the full Senate at the end of the month.