WASHINGTON – Today, U.S. Congressman David G. Valadao (CA-21) voted in support of the Conference Report to the Tax Cuts and Jobs Act which passed in the United States House of Representatives.
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U.S. Congressman David G. Valadao (CA-21) stated, “My constituents have suffered under an outdated tax code for far too long and as a result, unemployment rests at 10.2%, the median household income barely reaches $40,000, and a staggering 27.2% of my constituents live in poverty. Reforming our tax code to make it simpler and fairer will create jobs, grow our economy, and increase the amount of money Central Valley workers take home to their families."
The typical CA-21 family will receive an annual tax cut between $1,300 and $1,900
The Tax Cuts and Jobs Act 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 100% increase from the Child Tax Credit which increases from $1,000 to $2,000 per child
25,731 taxpayers in CA-21 have small business income – The Tax Cuts and Jobs Act will help these businesses grow and hire more workers
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 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
Key Provisions for Individuals and Families:
Lowers individual tax rates so people can keep more of their hard-earned money
Zero, 10%, 12%, 22%, 24%, 32%, 35%, and 37%
Doubles the standard deduction so that Americans can keep more of their paycheck
Expands the Child Tax Credit from $1,000 to $2,00 to help parents with the cost of raising children
Allows Californians to write off the cost of state and local 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 ($750,000 cap) to help Americans achieve the dream of homeownership
Provides immediate relief from the Death Tax by doubling the exemption so family owned farms and businesses can remain in the family
Preserves the ability for individual’s to deduct the interest on student loan debt
Key Provisions for Job Creators
Allows small businesses, most of whom currently file at the individual level, to apply a 20% deduction on the first $315,000 of joint income earned
Lowers the corporate tax rate from 35% to 21%
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
The Conference Report to the Tax Cuts and Jobs Act passed in the House of Representatives on Tuesday, December 19, 2017 by a vote of 227 to 203.
Congressman David G. Valadao represents the 21st Congressional District, which includes Kings County and portions of Fresno, Tulare, and Kern Counties.