WASHINGTON, D.C.— Thursday, the House of Representatives voted in favor othe Tax Cuts and Jobs Act, which would comprehensively reform America’s tax code for the first time since 1986. Congressman LaHood released the following statement regarding his vote in support:
Today’s vote is a big win for the middle class families of Illinois’ 18th district. For the past thirty years, they have seen our tax code get bigger while their paychecks got smaller,” said Rep. LaHood. By passing the Tax Cuts and Jobs Act, the House has taken the first step towards rectifying this, and I was proud to vote in support of it today. Our economy is strongest when the middle class gets to keep more of their money in their pockets, which is why I will continue advocating for a simpler and better tax system as the Senate takes up this process.
LaHood's office explained the vote:
An independent, non-partisan evaluation of the bill found that it would lead to 37,010 new full-time jobs in Illinois, and an increase of $2,333 in take-home pay for median households. You can read the full analysis here. For Illinois’ 18th district, a Ways and Means Committee analysis found that a family of four making the median household income would receive a tax cut of $2,060 every year. You can find that analysis here.
If you would like to interview Rep. LaHood on this bill, please contact Luke Bunting.
What this means for the American taxpayer:
- Lowers individual tax rates for low- and middle-income Americans to zero, 12%, 25%, and 35%. It maintains 39.6% for high-income earners.
- With this bill, a typical middle-income family of four, earning $59,000 (the median household income), will receive a $1,182 tax cut.
- Protects more of what you earn each year from taxes by roughly doubling the amount of the standard deduction. Nearly 70% of tax filers in the 18th District use the standard deduction.
- Supports the American family by expanding the Child Tax Credit from the current $1,000 to $1,600, nearly a 63% increase and preserving the Child and Dependent Care Tax Credit.
- Protects hard working middle-class taxpayers by preserving the home mortgage interest deduction for current existing mortgages and maintains the home mortgage deduction for newly purchased homes up to $500,000.
- Protects popular retirement savings options such as 401(k)s and Individual Retirement Accounts so Americans can continue to save for their future.
- Provides immediate relief for family farmers throughout the 18th District and fully repeals the Death Tax with a seven-year phase-out. For our family-owned farms and businesses all across the 18th District, they will no longer have to worry about double or triple taxation from Washington when they pass down their life’s work to the next generation.
- Maintains the ability of middle class families to deduct the cost of state & local property taxes up to $10,000
- To read the bill, click here.