WASHINGTON, D.C. — Today, Representative Ed Royce (R-CA) released the following statement after the House passed H.R. 1, the Tax Cuts and Jobs Act, legislation that will lead to new job-growth, more take-home pay, and a stronger American economy:
“It’s been 31 years since we last reformed our tax code. The current tax system is broken, burdensome, and continues to hurt job creation. In order to compete in a 21st century economy, California families and small businesses need tax relief—not more of the status quo. The Tax Cuts and Jobs Act focuses on boosting growth and helping people across the board keep more of what they earn.
“Enacting pro-growth tax policies will directly lead to more economic prosperity for every single American. While this bill is not perfect, it’s a good start. I’m committed to ensuring that the final product works for all Californians, especially for those who need it most.”
Impact of the Tax Cuts and Jobs Act on California:
According to the analysis conducted by the non-partisan Tax Foundation, the Tax Cuts and Jobs Act would lead to an increase of 111,108 new full time jobs in California over the next 10 years. Additionally, the median household in California would see a gain of $2,932 in after-tax income.
Overview of the Tax Cuts and Jobs Act:
• Lowers individual tax rates for low- and middle-income Americans. Income from $24,000 to $90,000 will be taxed at 12%, income from $90,000 to $260,000 will be taxed at 25%, income from $260,000 to $1 million will be taxed at 35% and income above that is taxed at the current top rate of 39.6%.
• Simplifies our increasingly confusing and complex tax code so an individual or family can file their taxes on a form as small as a postcard.
• Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
• 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 providing a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses.”
• Continues to allow people to write off the cost of state and local property taxes up to $10,000.
A full overview of the Tax Cuts and Jobs Act can be found HERE.