Rep. Buchanan Supports Sweeping Tax Cut
WASHINGTON – Congressman Vern Buchanan today released the following statement after voting for legislation to reduce taxes and simplify the tax code. The bill, approved by the House Ways and Means Committee, is expected to be on the House floor next week.
“This bill provides tax relief to middle-class families and small business owners across America,” Buchanan said. “Not only will the average family of four receive a tax cut but small businesses will finally be taxed at a rate that allows them to expand and create good-paying jobs. Passage of today’s bill is a positive step toward getting our economy back on track.”
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.
Highlights of the bill include:
- Doubles the standard deduction: Allows families to keep more of their own money by doubling the size of the standard deduction from $6,000 to 12,000 for individuals and $12,000 to 24,000 for 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.
- Provides Small Business Tax Relief: Establishes 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.
- 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 is a senior member of the House Ways and Means Committee and serves as the chairman of the panel’s Oversight subcommittee with jurisdiction over the IRS.