WASHINGTON – Today, U.S. Congressman David G. Valadao (CA-21) voted in support of the Tax Cuts and Jobs Act which passed in the United States House of Representatives.
H.R. 1, the Tax Cuts and Jobs Act, will create a fairer and less complex tax code for individuals, families, and job creators, delivering real tax relief to Americans across the country, especially those in California’s Central Valley.
U.S. Congressman David G. Valadao (CA-21) stated, “Our tax code hasn’t been reformed in over thirty years and, as a result, middle class Americans throughout the nation are struggling. This is especially evident in the Central Valley, where, unemployment levels are double the national average, 27.2% of my constituents live in poverty, and far too many families live paycheck to paycheck. By creating a simpler and fairer tax code, we will create jobs, grow our economy, and increase the amount of money Central Valley workers take home.”
H.R. 1 will create 975,000 jobs throughout the United States, 111,108 of which will be located in California alone
More than 64,000 taxpayers in CA-21 will see a 60% increase from the Child Tax Credit which increases from $1,000 to $1,600 per child
25,731 taxpayers in CA-21 have small business income – H.R. 1 will help these businesses grow and hire more workers
The Median Household Income in CA-21 is $41,174. Under the new code, the average Californian will see an after-tax wage increase of $2,932
More than 90% of CA-21 residents will be able to file their taxes on a form the size of a post card
While only 17% of CA-21 residents currently itemize their tax returns, under the new policy, just 5% of residents will itemize their returns
The typical American family will receive an annual tax cut of $1,182
Key Provisions for Individuals and Families
Creates a simpler, more fair tax code with five tax brackets instead of seven
Zero, 12%, 25%, 35%, and 39.6%
Doubles the standard deduction so that Americans can keep more of their paycheck
Expands the Child Tax Credit from $1,000 to $1,600 to help parents with the cost of raising children
Allows Californians to write off the cost of state and local property taxes up to $10,000
Eliminates special interest deductions that increase rates and complicate Americans’ taxes – so an individual or family can file their taxes on a form as simple as a postcard
Preserves the Earned Income Tax Credit to provide important tax relief for low-income Americans working to build better lives for themselves
Preserves the home mortgage interest deduction ($500,000 cap) to help Americans achieve the dream of homeownership
Provides immediate relief from the Death Tax by doubling the exemption and repealing the Death Tax after six years so that family owned farms and businesses can remain in the family
Key Provisions for Job Creators
Allows small businesses, most of whom currently file at the individual level, to receive the benefit of a lower 25% tax rate
Lowers the corporate tax rate from 35% to 20%
Allows businesses to immediately write off the cost of new equipment
Retains the low-income housing tax credit to encourage businesses to invest in affordable housing
Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad
H.R. 1, the Tax Cuts and Jobs Act passed in the House of Representatives by a vote of 227 to 205. The full text of the legislation can be found here and additional resources can be found here.
Congressman David G. Valadao represents the 21st Congressional District, which includes Kings County and portions of Fresno, Tulare, and Kern Counties.