Tax Cuts & Jobs Act Signed Into Law

Wednesday, December 20, 2017

“President Trump has signed the Tax Cuts and Jobs Act into law, which means hardworking Hoosiers at all income levels will be getting a tax cut. Middle-income Americans will be able to keep more of the money they earn, and businesses will be able to grow, invest, hire more workers, and raise wages. This law fulfills our promise to deliver a fair and simple tax code that puts working families first and gives them a better shot at the American Dream.”

 


Read about the Tax Cuts and Jobs Act

American jobs.

Fair and simple taxes.

More money in your pocket.

  • Click here to read the final text of the Tax Cuts and Jobs Act.
  • Click here to read policy highlights of the bill.

What tax reform means for you

Bigger paychecks.

American taxpayers send too much of their hard-earned money to Washington, making it harder for middle-income families to thrive. The Tax Cuts and Jobs Act means bigger paychecks for hardworking families, more money in their pockets, and more flexibility in how they use it.

  • Lowers income tax rates for Americans at all income levels, with rates of 0, 10, 12, 22, 24, 32, 35, and 37 percent.
  • Roughly doubles the amount of income excluded from taxes, with the standard deduction increasing to $24,000 for married couples and $12,000 for individuals.
  • Supports families by expanding the Child Tax Credit from $1,000 to $2,000 and preserving the Child and Dependent Care Tax Credit and the Adoption Tax Credit.
  • Makes no changes to critical retirement savings options like 401(k)s and Individual Retirement Accounts.
  • Maintains important education benefits, including student-loan interest deductions, and expands 529 accounts so families can save for elementary, secondary, and undergraduate education.

Fairer taxes.

The tax code is overly complicated and full of special interest carve-outs and loopholes. The Tax Cuts and Jobs Act eliminates special interest tax breaks and makes the tax code simpler so people can spend less time filing their taxes.

  • Simplifies the tax code so most individuals and families can file their taxes as easily as filling out a postcard.
  • Eliminates special-interest loopholes while maintaining important middle-income tax incentives.
  • Continues important tax deductions for middle-income Americans, including for charitable contributions, home mortgage interest, medical expenses, and state and local taxes up to $10,000.
  • Eliminates Obamacare’s individual mandate penalty so no one is forced to buy a health insurance plan they don’t want.
  • Protects family farms and small businesses from the Death Tax by doubling the amount of the current exemption.

More jobs.

Our outdated tax code makes it harder for businesses to create jobs and compete in the 21st century economy. The Tax Cuts and Jobs Act will help businesses grow, invest, and hire more workers, and it will keep America competitive in the global economy.

  • Lowers taxes on small businesses by offering a 20 percent deduction on business income earned by S corporations, partnerships, LLCs, and sole proprietorships.
  • Ensures tax relief is targeted to Main Street job creators by establishing strong safeguards.
  • Helps businesses invest and expand by allowing full and immediate expensing of new equipment and by preserving the ability of small businesses to write off interest on loans.
  • Lowers the corporate tax rate from 35 to 21 percent, below the average among industrialized nations.
  • Levels the playing field for American workers by ending incentives to send American jobs, manufacturing, and profits overseas.
  • Supports “Made in America” innovation by maintaining the Research and Development Tax Credit.

Tell me what you think!

I want to know what you think about tax reform. Send me an email to share your opinion.


Read my op-ed in the South Bend Tribune

Viewpoint: Time to fix the broken tax code

By Jackie Walorski

We’ve all heard the reasons why we need tax reform: Our tax code hasn’t been updated in 31 years. It’s complicated, antiquated, and unfair. It’s holding our economy back.

But you don’t have to read all 70,000-plus pages of the tax code to know it’s hurting American workers and families.

Hoosiers know this system is broken. You send too much of your hard-earned money to Washington and spend too much time figuring out your taxes. The tax code favors special interests, not hardworking Hoosiers like you.

It’s time to change all that.

When I joined the Ways and Means Committee, I set out to give Hoosiers a voice in this once-in-a-generation opportunity to fix our broken tax code. We worked with President Trump to come up with a plan that puts families, small businesses, manufacturers, and farmers first.

The Tax Cuts and Jobs Act will finally deliver the fair and simple tax code you deserve — one that cuts taxes for middle-class families and once again makes America the best place in the world to start and grow a business.

This bill will give workers and businesses a better chance to succeed. It will simplify the tax code by eliminating special-interest loopholes. And it will let you keep more of the money you earn.

Read the rest of the op-ed here.


Learn more about tax reform


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