Congressman Scott Perry voted in favor of the final conference report on the House GOP Tax Plan, the Tax Cuts and Jobs Act. The version of the bill was an agreed-to compromise of House and Senate leaders who spent weeks reconciling the difference between each chamber's Tax Plans.
"Tax reform is critical to growing our economy and breaking free of the lackluster economic conditions we've endured - slow-growth, stagnant wages and jobs fleeing overseas. Our Tax Code was last updated more than 30 years ago; our world and our economy have changed drastically since then, while the Code has grown increasingly outdated. This bill helps us keep more of what we earn -- especially for working families and small businesses - and modernizes our Code to help American companies compete abroad, create jobs here at home and help bring back companies from overseas -- that's why I supported this bill," said Congressman Perry.
The proposal is expected to be taken up by the Senate later this week. If it passes without changes, it goes to President Trump for his signature, after which it will become law.
doubles the standard deduction for both individuals and married couples, which means that the first $12,000 or $24,000 dollars of earned income is tax-free for these groups, respectively;
expands the Child Tax Credit up to $2,000 per child;
preserves the Adoption Tax Credit and the Dependent Tax Credit for families that help take care of an elderly parent or an adult, disabled child;
leaves in place existing benefits for grad students;
expands the medical expense deduction;
leaves in place the Mortgage Interest Deduction for homes that cost under $750,000; and,
repeals the individual mandate established in the Affordable Care Act.
"No one should ever be forced by the Government to purchase a product or service; that directly contradicts the fundamental notion of American liberty enshrined in the U.S. Constitution," Perry said regarding the individual mandate. "We need to stop forcing people to buy something they don't want, can't afford or don't need - and instead empower individuals to make the choices that are best for them and their families."
Businesses also will see changes under the Plan. The Corporate Tax Rate will drop from 35% - the highest in the world - to 21%, putting the U.S. on more competitive footing. Small businesses will see a 20% tax deduction on their first $315,000 of joint income earned; in order to qualify, the business must be organized as S corporations, partnerships, LLCs and sole proprietorships. In addition, the Plan establishes safeguards to ensure wage income does not receive the lower, marginal effective tax rates on business income - a critical measure that the Tax Plan in Kansas failed to incorporate.
Certain provisions will be implemented retroactively for 2017, and therefore impact filings due April 2018. While the provisions immediately go into effect at the start of 2018, many won't see the full impact of the changes until they begin filing their taxes in 2019.
"This reduces the tax burden on hard-working people, families and small businesses, simplifies the Tax Code and encourages economic growth and job creation. No one will get everything they want - but we need to improve upon the mess of a Tax Code we have now," Perry concluded.