Historic Tax Reform

Tax reform will undoubtedly boost the economy, create jobs, and lower taxes. Americans will keep more hard-earned money in their pocket. The standard deduction will double, meaning the tax bracket the federal government does not tax will expand to $12,000 for single filers and $24,000 for married couples. The Child Tax Credit will double from $1,000 to $2,000. All of this means that if you're saving up your money for an investment or even savings you will now have the money to make that payment. The average family is going to see less money coming out of their paychecks to pay taxes.

Rep. Lamborn advocated for several measures throughout the bill's process that will help ease the burden of taxes for many classes of people. He signed a letter to Ways and Means Chairman Kevin Brady and Speaker of the House Paul Ryan requesting the Adoption Tax Credit remain in the bill. The credit makes it easier for families who choose to adopt. At one point in the bill's development, a tax on graduate school tuition waivers was suggested. Rep. Lamborn agreed with his colleagues in a letter to Republican leadership that taxing graduate students, who already operate on a low budget, should not be permissible.

The Obamacare individual mandate is eliminated with this bill. The mandate made it illegal for people not to purchase government-approved health care. If you choose not to participate, the government majorly taxes you. With the newly-improved tax code, those with a low-income, usually the ones who could not afford health insurance, will no longer be punished with more taxes.

The Arctic National Wildlife Refuge in Alaska is abundant in oil reserves. Special interests banned the area for energy development, which goes against the petitions of the Alaska delegation. This natural resource has the potential to bring thousands of jobs and thte tax bill opens that up. For the American economy as a whole, this means a major boost thanks to massive energy development.

Rep. Lamborn issued this statement after voting for the passage of the bill:

"Congress listened to the American people and simplified our complicated tax code. This is a historic day for our country. Moving forward we can expect bigger paychecks and filing taxes will be as easy as sending a postcard. The middle and lower classes, for the first time in decades, will see more of their hard-earned money staying in their bank accounts. I'm looking forward to seeing the boom Colorado's economy will experience. More jobs will be created, which means more opportunities for our region's small business to expand, hire more workers, and invest."

What does our bill do? 

Courtesy of: FairandSimple.gop

 

Lowers individual tax rates for low- and middle-income Americans

Lowers individual taxes and sets the rates at 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37% so people can keep more of the money they earn throughout their lives.

Significantly increases the standard deduction AND EXPANDS THE CHILD TAX CREDIT

Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,500 and $13,000 under current law to $12,000 and $24,000 for individuals and married couples, respectively.

Expands the Child Tax Credit from $1,000 to $2,000 for single filers and married couples to help parents with the cost of raising children. The tax credit is fully refundable up to $1,400 and begins to phase-out for families making over $400,000.

Preserves the home mortgage interest deduction

Preserves the mortgage interest deduction – providing tax relief to current and aspiring homeowners. For all homeowners with existing mortgages that were taken out to buy a home, there will be no change to the current mortgage interest deduction.

For homeowners with new mortgages on a first or second home, the home mortgage interest deduction will be available up to $750,000.
 

Prevents American jobs, headquarters, and research from moving overseas 

Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad.
 

Improves savings vehicles for education and Provides support for graduate students

Improves savings vehicles for education by allowing families to use 529 accounts to save for elementary, secondary and higher education.

Provides support for graduate students by continuing to exempt the value of reduced tuition from taxes.

Delivers significant tax relief to Main Street job creators

Offering a first-ever 20% tax deduction that applies to the first $315,000 of joint income earned by all businesses organized as S corporations, partnerships, LLCs, and sole proprietorships. For Main Street job creators with income above this level, the bill generally provides a deduction for up to 20% on business profits – reducing their effective marginal tax rate to no more than 29.6%.

Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers – unleashing growth of jobs, productivity, and paychecks

Provides relief for Americans with expensive medical bills and Eliminates Obamacare’s individual mandate penalty tax

Provides relief for Americans with expensive medical bills by expanding the medical expense deduction for 2017 and 2018 for medical expenses exceeding 7.5 percent of adjusted gross income, and rising to 10 percent beginning in 2019.

Eliminates Obamacare’s individual mandate penalty tax – providing families with much-needed relief and flexibility to buy the health care that’s right for them if they choose.


 

Lowers the corporate tax rate to 21%

Lowers the corporate tax rate to 21% (beginning Jan. 1, 2018) – 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