CRAMER: House Passes Historic Final Vote on Tax Cuts & Jobs Act
WASHINGTON, D.C. – Congressman Kevin Cramer issued the following statement following after the U.S. House of Representatives passed the Conference Report to Accompany H.R. 1 – the Tax Cuts & Jobs Act:
“Today’s a truly historic moment for Congress, for our country, and for the conservative values of small government that so many of us stand on. With the passage of the Tax Cuts and Jobs Act, Congress just corrected the tax imbalance created by decades of special interest lobbying in Washington. In 2018, North Dakota families across all income levels will keep more of their money; America will be open for business as one of the most competitive countries in the world; and 70,000 pages of convoluted tax code will be simplified to the point where most individuals will be able to fill out their taxes on a post card. Putting money back into local economies where it belongs is the best Christmas gift Washington can give, and I was glad to support Congressional Republicans and President Trump in bringing tax cuts to the people of North Dakota.”
NORTH DAKOTA HIGHLIGHTS OF TAX BILL:
Individuals and Families
- Reduces taxes at every income level and sets individual rates at 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
- Doubles the standard deduction to $12,000 for single filers, $18,000 for heads of household, and $24,000 for joint filers. Over 80 percent of North Dakotans currently take the standard deduction.
- Preserves and expands the deduction for charitable contributions.
- Continues to allow people to write off the cost of state and local taxes – just like current law – up to $10,000. Gives individuals and families the ability to choose among sales, income and property taxes to best fit their unique circumstances.
- Expands the Child Tax Credit from $1,000 to $2,000 for single filers and married couples. The tax credit is fully refundable up to $1,400 and begins to phase-out for families making over $400,000. Parents must provide a child’s valid Social Security Number in order to receive this credit. The bill also provides a $500 nonrefundable credit for non-child dependents.
- Retains the mortgage interest deduction – providing tax relief to current and aspiring homeowners. For all homeowners with existing mortgages that were taken out to buy a home, there will be no change to the current mortgage interest deduction. For homeowners with new mortgages on a first or second home, the home mortgage interest deduction will be available up to $750,000.
- Preserves the medical expense deduction and expands it in years 2018 and 2019 for medical expenses exceeding 7.5 percent of adjusted gross income. This floor reverts back to 10 percent beginning in 2020.
- Eliminates Obamacare’s individual mandate penalty tax – providing families with much-needed relief and flexibility to buy the health care that’s right for them if they choose.
- Retains the student loan interest, qualified tuition, and educator expense deductions. Graduate student tuition waivers also remain in place.
- Increases the exemption amount from the Alternative Minimum Tax (AMT) to reduce the complexity and tax burden for millions of Americans.
Farmers and Ranchers
- Supports farm cooperatives by including the Hoeven-Thune amendment to allow for a 20 percent tax deduction at the entity and member level.
- Expands and makes permanent section 179 expensing up to $1 million in assets.
- Provides for full and immediate expensing of capital investments for five years.
- Preserves full interest deductibility for farmers, ranchers, and small businesses with average gross receipts of $25 million or less.
- Doubles the current estate tax exemption and maintains step-up in basis for capital gains.
- Preserves cash accounting.
- Lowers the corporate tax rate to 21% (beginning Jan. 1, 2018) – 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.
- Delivers significant tax relief to small business job creators by offering a first-ever 20% tax deduction that applies to the first $315,000 of joint income earned by all businesses organized as S corporations, partnerships, LLCs, and sole proprietorships. For Main Street job creators with income above this level, the bill generally provides a deduction for up to 20% on business profits– reducing their effective marginal tax rate to no more than 29.6%.
- Retains the tax-preferred status of private-activity bonds that are used to finance valuable infrastructure projects.
- Eliminates the Corporate Alternative Minimum Tax
Read the full summary here.