A press release from Congressman Randy Hultgren:
Tax Cuts for Illinois Families and Small Businesses
Hultgren Supports Passage of the Tax Cuts and Jobs Act Conference Report
Washington, DC —Today, U.S. Representative Randy Hultgren (R-IL-14) supported passage of H.R. 1, the Tax Cuts and Jobs Act.
“I am thrilled the final version of the tax reform legislation included three Illinois victories for which I fought: provisions from my bill, the Bring Small Businesses Back Tax Reform Act, theprotection of local infrastructure projects through key financing tools and the maintaining of tuition waivers for graduate students, including those entering STEM fields. Illinois individuals will benefit from immediately lower tax rates and the doubling of the standard deduction, used by more than 70 percent of Americans. Illinois families will benefit from a doubling of the child tax credit. The engine of Illinois’ economy—our small businesses—will immediately benefit from a reduced tax burden and more flexible accounting rules,” said Rep. Hultgren. “Congress has not fully updated the U.S. Tax Code since 1986, and everyone in Illinois and the 14th District will be able to take advantage of lower rates, easier tax-filing and national economic growth this tax reform package will deliver.”
For individuals and families, the Tax Cuts and Jobs Act:
· Lowers individual tax rates for low- and middle-income Americans to 10%, 12%, 22%, 24%, 32%, 35% and 37% so people keep more of what they earn.
· Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
· Eliminates special-interest deductions that increase rates and complicate Americans’ taxes – so an individual or family can file their taxes on a form as simple as a postcard.
· Takes action to support more American families by:
o Establishing a new Family Credit – which includes expanding the Child Tax Credit from $1,000 to $2,000 to help parents with the cost of raising children, and providing a credit of $500 for each parent and non-child dependent to help all families with their everyday expenses.
o Preserving the Child and Dependent Care Tax Credit to help families care for their children and older dependents such as a disabled grandparent who may need additional support.
o Preserving the Adoption Tax Credit so parents can continue to receive additional tax relief as they open their hearts and their homes to an adopted child.
- Lowers the threshold for the medical expense deduction to 7.5 percent of adjusted gross income (from 10 percent) to help Americans with high medical bills.
- Eliminates the Affordable Care Act individual mandate penalty to cut taxes on the low- and middle-income families who are paying it and allow Americans to make their own health insurance choices.
- Maintains the Earned Income Tax Credit to provide important tax relief for low-income Americans working to build better lives for themselves.
- Maintains the graduate tuition waiver to allow graduate students in a variety of fields to be shielded from a large tax on their tuition costs at a time when they cannot afford it.Rep. Hultgren advocated for the inclusion of this provision.
- Continues the deduction for charitable contributions so people can continue to donate to their local church, charity or community organization.
- Preserves the home mortgage interest deduction for existing mortgages and maintains it for mortgages on newly purchased homes up to $750,000, providing relief to current and aspiring homeowners.
- Continues to allow people to write off the cost of state and local income and property taxes up to $10,000.
- Retains 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 from the Death Tax by doubling the exemption. Family-owned farms and businesses 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
For job creators of all sizes, the Tax Cuts and Jobs Act:
- Lowers the corporate tax rate to 21% – 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.
- Gives Main Street job creators (“pass-through” companies) a 20 percent deduction on qualified business income to allow them to expand and hire more workers.
- Establishes strong safeguards to distinguish between individual wage income and “pass-through” business income so Main Street tax relief goes to the local job creators it was designed to help most.
- Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers – unleashing the growth of jobs, productivity and paychecks.
- Protects the ability of small businesses to write off the interest on loans that help these Main Street entrepreneurs start or expand a business, hire workers and increase paychecks.
- Retains the low-income housing tax credit that encourages businesses to invest in affordable housing so families, individuals and seniors can find a safe and comfortable place to call home.
- Preserves the Research & Development Tax Credit – encouraging our businesses and workers to develop cutting-edge “Made in America” products and services.
- Modernizes our international tax system so America’s global businesses will no longer be held back by an outdated “worldwide” tax system that results in double taxation for many of our nation’s job creators.
- Makes it easier for American businesses to bring home foreign earnings to invest in creating new jobs in our local communities.
- Prevents American jobs, headquarters and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits and manufacturing plants abroad.
The American Council of Engineering Companies (ACEC), Edison Electric Institute, Illinois Farm Bureau, Information Technology Industry Council (ITI), International Franchise Association, National Federation of Independent Business (NFIB), National Retail Federation, National Association of Manufacturers, Small Business and Entrepreneurship Council and U.S. Chamber of Commerce—all of which represent thousands of Illinois individuals and businesses—all supported H.R. 1 as a boost to the economy and small businesses throughout the state.