WASHINGTON – U.S. Congressman Brian Mast (FL-18) today released the following statement after the U.S. House of Representatives passed the Tax Cuts and Jobs Act:
“Bureaucrats in D.C. seem to forget that every dollar they spend is the result of somebody else’s labor. It’s about time that we make the government do more with less and empower the American people to do more with more.
“This is a great accomplishment: the first major tax reform since the Reagan Administration. Our bill simplifies the tax code, doubles the standard deduction for all families, and most importantly, cuts taxes for low- and middle-income families who are struggling just to get by. Every dollar less the government takes, and every dollar more that you keep in your pocket, is a big win. That’s exactly what this bill does and why it will grow middle class paychecks in Florida by more than $2,250 and lead to the creation of more than 55,000 new jobs.”
The Tax Cuts and Jobs Act:
- Lowers individual tax rates for low- and middle-income Americans to 0%, 12%, 25%, and 35% so people can keep more of the money they earn throughout their lives, and continues to maintain the 39.6% rate for the wealthiest Americans.
- Significantly increases the standard deduction to protect roughly double the amount of what taxpayers 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.
- Establishes a new Family Credit, which includes expanding the Child Tax Credit from $1,000 to $1,600 to help parents with the cost of raising children and provides a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses.
- Reduces the tax rate on the business income of Main Street job creators to no more than 25% – the lowest tax rate on small business income since World War II.
- Lowers the corporate tax rate to 20%, down from 35%, which today is the highest in the industrialized world.
- Maintains the Mortgage Interest Deduction for mortgages up to $500,000.
- Maintains popular deductions that help low- and middle-income families, such as the Earned Income Tax Credit, charitable deductions and deductions on 401(k) retirement accounts.
The bill would:
- Lead to the creation of an additional 56,530 jobs in Florida, according to the nonpartisan Tax Foundation.
- Raise after-tax income for middle class families in Florida by an average of $2,252, according to the nonpartisan Tax Foundation.
- Allow 41,887 taxpayers in the 18th District that claim the child tax credit to deduct an addition $600 per child.
- Drastically reduce taxes for 61,644 taxpayers in the 18th District that have small business income – capping the rate at 25%.
- Simplify tax filing for many of the 105,875 taxpayers who currently itemize their taxes, as a result of doubling of the standard deduction and other simplifications.