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Congressman Bob Latta (R-Bowling Green) applauded the changes made to the House Tax Cuts and Jobs Act in the final compromise bill released by the Conference Committee on Friday. In addition, Latta highlighted the benefits for middle-class families in Ohio’s 5th Congressional District.

Latta had recently joined his colleagues in sending a letter to conferees asking that the final bill not count graduate student tuition waivers or tuition waivers for family members of university employees as income. The legislation released on Friday maintains the current policy of exempting tuition waivers from income and also allows taxpayers to continue to deduct student loan interest. At the same time, the bill protects the medical expense deduction and expands it by reducing the percentage of adjusted gross income that taxpayers must spend on medical expenses to qualify for the deduction from 10% to 7.5%.
 
The bill nearly doubles the standard deduction, which means that 90% of taxpayers will be able to file their taxes on a form the size of a postcard. The Tax Cuts and Jobs Act also doubles the child tax credit from $1,000 to $2,000 – a provision that will support working families.

“Starting as soon as next year, a family of four making the median income in Ohio’s 5th Congressional District would keep $2,415 more annually if this legislation becomes law,” said Latta. “At the same time, tax filing will be much simpler with nine out of ten taxpayers being able to submit their taxes on a form the size of a postcard.
 
“While I agreed with much of the legislation originally passed by the House, I’m glad the conferees have improved that legislation by keeping provisions that help college students, those with high medical expenses, and working families.
 
“In addition to the benefits that individual families will receive, everyone will benefit from the economic growth and job creation that will be spurred by the Tax Cuts and Jobs Act. It’s been 31 years in the making, and tax reform is long overdue. This legislation will mean more Ohioans can keep more of their hard-earned money and receive the tax relief they deserve.”
 
In addition to the previous provisions, the legislation also retains the Historic Tax Credit, an important provision to Ohio communities. The bill also maintains the tax treatment of Private Activity Bonds, which are important for a number of economic development projects.
 
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