Idaho Congressman Mike Simpson praised the passage of H.R. 1, the Tax Cuts and Jobs Act today in the House of Representatives. H.R. 1 is the first comprehensive tax reform legislation to pass the House since 1986.
“Since coming to Congress, I’ve talked to farmers, ranchers and businesses throughout Idaho and I consistently hear about the burden that our overly complex, outdated, and unfair tax code puts on families and small businesses,” said Simpson. “This bill will relieve much of that burden and allow more people to see a greater share of their paychecks in their wallet. This will empower families in Idaho to make the decisions that they believe are best for their family, as opposed to sending their hard earned money to Washington.”
H.R. 1 will lower tax rates on individuals and businesses of all sizes. It will nearly double the standard deduction, so the first $12,000 earned by an individual and $24,000 earned by a married couple is completely tax-free. It will also lower individual tax rates, significantly increase the child tax credit, and create a new $300 tax credit for families caring for non-child dependents. It retains tax incentives that benefit individuals and families such as the home mortgage interest, charitable contributions, higher education, adoption, and retirement security. The bill also repeals the estate tax, also known as the “death tax” which is a top concern for family owned farms across Idaho.
“The United States has one of the highest corporate tax rates in the world, so taking that rate down to 20% is going to benefit our entire economy,” said Simpson. “We need to stop incentivizing companies from leaving America to go create jobs elsewhere. Not only will they stay and create more jobs, but the wages for American workers will be higher and our businesses will be more competitive on a global stage. Simply put, this legislation is about creating economic growth in the United States by unleashing American small businesses and unburdening middle class families so they make better financial decisions with their own money.”
In addition to lowering the corporate tax to 20%, H.R. 1 will reduce the tax rate on business income to no more than 25%; establish safeguards to distinguish individual wage income and “pass through” business income; modernize our international tax system; and eliminates incentives that currently reward companies from shifting jobs, profits, and manufacturing plants abroad.
H.R. 1 passed by a vote of 227-205. The Senate is working on their own version of H.R. 1 and is expected to conference that version with the House legislation in December.