WASHINGTON, D.C. — Today, Representative Ed Royce (CA-39) released the following statement in support of the Conference Report for H.R. 1, the Tax Cuts and Jobs Act, the first major overhaul of our nation’s tax code since 1986:
“Since day one, I’ve been fighting for provisions that allow struggling California families to keep more of their hard-earned money. I’m pleased to see many of those provisions protected in the final Conference Report including a deduction for state and local taxes, the mortgage interest deduction, the student loan interest deduction, as well as the exclusion for graduate student tuition assistance.
“Combined with reducing tax rates for small businesses, the vast majority of California families will see their taxes reduced and simplified while keeping more of their paychecks. The final version of the Tax Cuts and Jobs Act creates a competitive, pro-growth tax code that will empower a new generation of American innovation and prosperity.”
The full text of Conference Report can be foundHERE.
Summary of the Conference Report for H.R. 1, the Tax Cuts and Jobs Act: (Courtesy of the House GOP Conference)
Lowers individual taxes rates across the board so people can keep more of their hard-earned money.
Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,500 and $13,000 under current law to $12,000 and $24,000 for individuals and married couples, respectively.
Continues to allow people to write off the cost of state and local taxes– up to $10,000. Gives individuals and families the ability to deduct property taxes and income – or sales – taxes to best fit their unique circumstances.
Expands the Child Tax Credit from $1,000 to $2,000 for single filers and married couples to help parents with the cost of raising children. 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.
Preserves 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.
Improves savings vehicles for education by allowing families to use 529 accounts to save for elementary, secondary and higher education.
Provides support for graduate students by continuing to exempt the value of reduced tuition from taxes.
Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts (IRAs) so Americans can continue to save for their future.
For job creators of all sizes:
Offers 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%.
Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers – unleashing growth of jobs, productivity, and paychecks. Protects the ability of small businesses to write off interest on loans, helping these Main Street entrepreneurs start or expand a business, hire workers, and increase paychecks
Retains the low-income housing tax credit that encourages businesses to invest in affordable housing so families, individuals, and seniors can find a safe and comfortable place to call home.
Modernizes our international tax system so America’s global businesses will no longer be held back by an outdated “worldwide” tax system that results in double taxation for many of our nation’s job creators.
Makes it easier for American businesses to bring home foreign earnings to invest in growing jobs and paychecks in our local communities.
Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad.