Congress moved another step closer to delivering a big Christmas gift for women, workers, businesses, and families: tax reform.
Republican leaders from the Senate and House of Representatives struck an agreement yesterday to reconcile the tax reform bills passed by each body.
IWV issued a statement of support of this agreement:
“We are pleased that the negotiated agreement appears to benefit low- and middle-income families by allowing workers to keep more of their hard-earned money, to encourage small and large companies to reinvest in their people through more hiring and higher wages, and to end the unpopular individual health insurance mandate which simply taxes poor Americans.”
While the full details have not been released, here are a few highlights based on reporting:
Corporate tax rate drops to 21 percent from 35 percent (effective in 2018)
Sets the effective top tax rate for pass-through (small businesses) to 29.6 percent
Lowers the top individual rate to 37 percent from 39.6 percent and cuts other individual rates
Increases the standard deduction for couples to $24,000
Retains deductions for mortgage interest, state and local income or property taxes, student-loan interest, and medical expenses
Repeals the individual healthcare mandate from the Affordable Care Act
We await final details on the bill which are expected soon. However, these efforts indicate that Congress is making good on its promise to deliver pro-growth and pro-family reforms.
The Hill reports that both the Senate and the House plan to vote on the final bill next week and hope to get it on President Trump’s desk before Christmas.
Once signed into law, Americans can expect the gift of bigger paychecks, stronger economic growth, and more opportunity in the future.