Yoder Statement on Introduction of Tax Reform Legislation
Nov 2, 2017
Washington, DC – This morning, the House Ways and Means Committee introduced its initial draft of the Tax Cuts and Jobs Act, the legislation that will reform our tax code in the most significant way since 1986. Representative Kevin Yoder (R-KS) issued the following statement in response to bill’s introduction:
"I’m excited about today's opening proposal by the Ways and Means Committee,” Representative Yoder said. “Tax reform is a critical part of our economic growth agenda, along with reducing harmful regulations and making targeted investments in things like education and research. We’re going to work through the amendment process, make this an even better final product, and hopefully bring a bill to the President that makes the tax code more simple and fair, helps create jobs and grow paychecks, and helps working families keep more of their hard-earned money.”
Over the course of several weeks, Yoder had extensive conversations and meetings with Speaker Paul Ryan (R-WI) and other GOP House leadership to advocate for the preservation of the child care tax credit, which would have been eliminated in previous drafts of the bill. Along with Representative Stephanie Murphy (D-FL), he has introduced the Promoting Affordable Childcare for Everyone (PACE) Act, a bipartisan bill to increase the child care tax credit and flex spending accounts, index them to inflation, and make them refundable for low-income families.
“We’ve rescued the child care tax credit from the dead and believe we will get flex spending accounts back as the bill works its way through the House,” Yoder said. “My belief remains that these important tools for working families & working mothers should be enhanced not eliminated.”
For individuals and families:
- Lowers individual tax rates for low- and middle-income Americans to zero, 12 percent, 25 percent, and 35 percent, while maintaining a 39.6 percent rate for high-income Americans.
- Makes the first $12,000 for individuals and $24,000 for married couples tax-free by doubling the standard deduction utilized by 105 million Americans – meaning a guaranteed cut for nearly 70 percent of tax filers.
- Eliminates special-interest loopholes so about 90 percent of Americans can file their taxes on a form as simple as a postcard.
- Retains popular middle-class deductions for retirement savings options such as 401(k)s and Individual Retirement Accounts, mortgage interest, charitable contributions, and state and local property taxes.
- Establishes a new Family Credit that expands the Child Tax Credit utilized by 22 million Americans 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.
- Preserves the Child and Dependent Care Tax Credit to help families provide their children with valuable early-childhood education and care.
- Repeals the Alternative Minimum Tax originally designed to tax the super-rich, but that now hits 5 million Americans in the upper-middle class, forcing them to calculate their taxes twice and pay a higher amount.
- Provides immediate relief to family-owned farms and businesses by doubling the Death Tax exemption and repealing it altogether after six years.
For job creators:
- Brings America’s corporate tax structure in line with our global competitors by lowering the business rate from 35 percent to 20 percent – restoring America as the most competitive place to do business in the world.
- Reduces the small business tax rate to no more than 25 percent – the lowest tax rate on small business income since World War II.
- ***Unlike the Kansas Tax Experiment, the plan establishes strong safeguards to distinguish between individual wage income and “pass-through” business income to prevent tax avoidance and abuse.
- Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers – which economists have argued will generate even more economic growth than cutting the corporate tax rate.