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Brady’s tax bill approved

Madisonville Meteor

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Washington, December 27, 2017 | comments

Some key effects of the bill, using a couple with two children earning $45,000 (data provided by U.S. Rep. Kevin Brady’s office):

(Note: the median household income in Madison County as of 2016 was $42,429, according to the Texas Association of Counties.)

•The standard deduction is doubled to $24,000 — so no taxes on the first $24,000 in income vs. $12,600 under current law

•Taxable income between $0 and $19,050 would be taxed at 10 percent equal to current law

•Taxable income between $19,050 and $45,000 would be taxed at 12 percent rather than the current rate of 15 percent

•They would be allowed a tax credit of $2,000 per child (vs. $1,000 under current law) and $1,400 of this would be a refundable credit

•They would still be able to deduct contributions to retirement plan even if they take the standard deduction

Every tax situation is different. Assume that the couple takes the standard deduction; the federal tax rate would drop from $1,905 to $0 and the couple would receive a refund of about $1,500. (Both of these could be reduced further and by the same amount as current law and the new law allows deductions for state and local taxes on top of the standard deduction.)

For a married couple with no children earning $45,000

•The standard deduction is doubled to $24,000 — so no taxes on the first $24,000 in income vs. $12,600 under current law

•Taxable income between $0 and $19,050 would be taxed at 10 percent equal to current law

•Taxable income between $19,050 and $45,000 would be taxed at 12 percent rather than the current rate of 15 percent

•They would still be able to deduct contributions to retirement plan even if they take the standard deduction

Should the couple take the standard deduction, the federal tax rate would drop from $3,905 to $2,200. (Both of these could be reduced further and by the same amount as current law and the new law allows deductions for state and local taxes on top of the standard deduction.)

By Tony Farkas

After two votes in the House, one in the Senate and mountains of press both praising and condemning the measure, President Donald Trump signed the Tax Cuts and Jobs Act on Friday.

The approval, according to U.S. Rep. Kevin Brady, R-Texas, the architect of the bill, will give Americans much-needed relief as it provides a “once-in-a-generation” overhaul of the nation’s “broken tax code.”

“Today is truly a historic day for the American people,” Brady said. “By signing the Tax Cuts and Jobs Act, President Trump put our nation’s broken tax code behind us and ignited a new era of American prosperity.”

Brady reiterated that the legislation will deliver relief to hardworking families in his district and across the country who will be able to keep more of the money they earn.

“It will create more opportunities for workers to find that next new job, earn that long-overdue raise, and get ahead,” he said. “And it will revitalize our economy so American businesses can once again compete and win anywhere in the world — but especially here at home.”

Comprehensive tax reform was the biggest legislative challenge of any generation, Brady said. “With President Trump’s leadership, we were able to overcome that challenge and deliver on our promise to the American people,” he said. “I’m proud to say there will be a new tax code — a pro-growth, pro-family, pro-America tax code — in the New Year.”

Brady said that it is estimated that 87 percent of taxpayers will be able to pay their taxes using a simple postcard.

“We stripped the tax code down to its basics, and started listening to the American people about what is important to them,” he said. “They said it was important that young people be able to deduct their student loans and classroom costs, and that Americans that have been hurt by Obamacare and skyrocketing medical costs have a medical expense deduction. This final bill truly reflects their priorities.”

Backlash over the bill includes condemnation that the tax cuts will essentially hurt the middle class and provide cuts only for the most wealthy; however, Brady said it was “baloney,” that Democrats had written the talking points two years ago and ignore what tax relief is provided.

He said that hardworking families in Texas will see on average $2,000 more in income based on the tax bill.

“It’s saving for college tuition; it’s a utility bill,” Brady said. “Opponents of this aren’t worried about tax cuts for the rich, they’re worried about tax cuts for you. It means Washington doesn’t get to decide how (people’s) money is spent.”

Brady also said that no programs were cut to fund the tax bill.

“This is a fake news item you hear from opponents of tax reform, and it goes back to them wanting as much of your money sent to Washington as they can take from you,” he said.

 

Brady also said that it was his belief that if they had not done tax reform, it would be detrimental on many fronts.

“(With no tax bill) and if our economy continues to slough along for another decade (as economists predict it will), it will grow our debt and you will see cuts for important programs like the military,) he said. “Only by growing the economy can we grow revenue to the federal government.”

Another benefit to additional revenue is that Social Security and Medicare will see a boost in revenue, he said.

"Those programs are funded through payroll taxes, and it depends on how many people are working and how good of a paycheck they have," he said. "This bill strengthens those programs by getting more people back to work."

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