Today, the House passed H.R. 1, the Tax Cuts and Jobs Act, which makes America's tax system fairer, simpler and lowers taxes on the middle-class. Congressman David B. McKinley, P.E., (WV-1) voted yes on the bill and will be monitoring the next steps with the Senate.
"It has been 31 years since we updated our tax code. America is now much more deeply involved in global competition; therefore, it's time to reform our tax system. This reform will bring some much-needed relief to the middle-class. We must make our code simpler and fairer, and this bill removes special interest loopholes, reduces rates, and makes it so that most families can file their taxes on a postcard. It will also increase America's competitiveness on the world stage, and open the door for private sector job creation," said McKinley.
"Our office successfully worked to preserve clean coal research credits in the House legislation," he added. "We are expecting the Historic Preservation Tax Credit to be included in the final version."
"We have a clear choice here: do we allow the status quo to continue, which only benefits the wealthy and politically connected? Or do we allow the process to continue and fight to ensure the final version is the best deal possible for the middle class and small employers?" said McKinley.
"This is a process, and today we voted to move forward to the next step. Some issues still need to be resolved in the final bill, and we will be closely monitoring the negotiations," McKinley said.
The Tax Cuts and Jobs Act delivers on the promises made by Congressional Republicans and President Trump to lower middle-class tax rates and open the door for more private sector job creation.
The Tax Cuts and Jobs Act:
Lowers individual tax rates for low- and middle-income Americans to Zero, 12%, 25%, and 35%.
Doubles the standard deduction from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
Average middle-class family of four will save $1,182 per year on taxes.
West Virginia will see a $1,685 increase in median household income.
Expands the Child Tax Creditfrom $1,000 to $1,600 to help parents with the cost of raising children.
Preserves the home mortgage interest deduction for existing mortgages and maintains the credit for newly purchased homes up to $500,000.
Retains popular retirement savings optionssuch as 401(k)s and Individual Retirement Accounts so Americans can continue to save for their future.
Lowers the corporate tax ratefrom 35% to 20%, opening the door for private sector job growth.
Makes it easier and far less costly for American businesses to bring home foreign earningsto invest in creating jobs and increasing paychecks in our local communities.
McKinley successfully worked with House leadership to ensure that the bill also retains critical clean coal research credits. As the process moves forward, he will continue working to ensure that the Historic Preservation Tax Credit is included in the final version that comes out of the conference committee. This credit is critical in redeveloping Main Streets throughout West Virginia.