U.S. House Passes Tax Legislation; Latta Votes for Historic Reform
Congressman Bob Latta (R-Bowling Green) joined his colleagues today in passing the Tax Cuts and Jobs Act, legislation that would simplify the tax code and provide needed relief to middle-class families and small businesses. Under the bill, H.R. 1, an average family of four making an annual income of $59,000 would receive a tax cut of $1,182. The last time the tax code was significantly reformed was 1986.
“It’s been 31 years since the last overhaul of the tax code,” said Latta. “And in that time, our tax system has become complicated, confusing, and unfair. The Tax Cuts and Jobs Act provides needed relief to the middle-class families and small businesses that drive our economy. At the same time, under this legislation, nine out of ten families will be able to file their taxes on a form the size of a postcard. The time is now to simplify our outdated tax code and let Ohioans keep more of their hard-earned money.”
According to the Tax Foundation, the legislation would also create more than 33,000 full time jobs in Ohio and nearly a million nationwide. H.R. 1 uses a new 25% rate for small businesses so that they can grow, buy more equipment, and hire new employees. The bill also would reduce the corporate tax rate, which is the highest in the world, in order to put American businesses on more level ground with foreign competitors.
The Tax Cuts and Jobs Act nearly doubles the standard deduction — increasing it for individuals from $6,350 to $12,000 and for married couples from $12,700 to $24,000 — allowing families to protect more of their income from taxation. H.R. 1 also reduces the number of brackets from seven to four. At the same time, the bill protects certain credits and deductions enjoyed by Ohioans. That includes maintaining the tax-exempt status of 401k and Individual Retirement Account (IRA) contributions and strengthening popular 529 college savings plans.
This week, Congressman Latta authored an op-ed in the Findlay Courier on the tax reform legislation, you can read the piece here.