House delivers on tax reform promise, repeals Obamacare mandate

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Washington, D.C. – In a historic vote today, the U.S. House of Representatives passed the conference report on H.R. 1, the Tax Cuts and Jobs Act, sending it to the Senate for final approval and then to the president’s desk for signature. This bill is a result of years of Congressional hearings, analysis and rigorous debate that will result in the largest tax reform package in more than 30 years, aimed at simplifying the tax code to create a fairer, more beneficial system for all Americans. Among its other provisions, this bill also repeals the individual mandate implemented under the Affordable Care Act.

Rep. Mike Johnson (LA-04) has been a longtime advocate for tax reform and voted in favor of this bill. The measure passed the House by a vote of 227-203.

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Johnson released the following statement:

 

“The passage of the Tax Cuts and Jobs Act is an extraordinary victory for the American people – paving the way for more jobs, fairer taxes and bigger paychecks. With across the board tax cuts, our economy will expand, families and individuals will get to keep more of their hard-earned dollars to spend how they see fit, and job creators will have the ability to offer better opportunities for more people. Additionally, this bill helps put Americans back in control of their healthcare decisions by removing the unprecedented government mandate that forced patients to buy into a failing healthcare system at exorbitant costs. Relief is within our reach, and I encourage my colleagues in the Senate to pass this measure swiftly.”

 

Bill Highlights

  • Significantly increases the standard deduction to allow roughly double the amount of what you keep 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 taxes – or sales – to best fit their unique circumstances
  • Supports American families by expanding 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, preserves the Adoption Tax Credit, and creates a Family Tax Credit to help families care for their children and older dependents
  • Preserves the mortgage interest deduction to provide tax relief for current and aspiring homeowners
  • Provides relief for Americans with expensive medical bills by expanding the medical expense deduction
  • Continues and expands the deduction for charitable contributions so people can continue to donate to their local church, charity or community organization
  • Lowers the corporate tax rate to 21 percent, down from 35 percent, which today is the highest in the industrialized world and will unleash the free market to create jobs and increase paychecks
  • Seeks to prevent American jobs, headquarters and research from moving overseas by eliminating incentives in the tax code that now reward companies for shifting jobs, profits and manufacturing plants overseas
  • Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers which in turn will spur economic growth to create jobs and increase productivity