President Donald Trump Signs Tax Cuts and Jobs Act | Beaufort County Now | The Tax Cuts Act provides $5.5 trillion in tax cuts, $3.2 trillion, or nearly 60 percent, of which go to families

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President Donald Trump Signs Tax Cuts and Jobs Act

Press Release:

    TAX CUTS FOR AMERICAN FAMILIES: The Tax Cuts Act means less money taken out of Americans' paychecks.

Tax Reform: They Got it Done (from left to right: Senate Majority Leader Mitch McConnell; Speaker of the House Paul Ryan; President Donald Trump; Vice President Mike Pence)     Click image to expand.    Official White House Photo.

  • The Tax Cuts Act provides $5.5 trillion in tax cuts, $3.2 trillion, or nearly 60 percent, of which go to families.
  • The Tax Cuts Act nearly doubles the standard deduction.
    • For individuals, the standard deduction will be increased from $6,500 to $12,000.
    • For single parents, the standard deduction will be increased from $9,550 to $18,000.
    • For married couples, the standard deduction will be increased from $13,000 to $24,000.

  • The vast majority of American families will now be able to file their taxes on a single page because they lower taxes by claiming the standard deduction.
  • American families will see their Child Tax Credit doubled to $2,000 per child under age 17.
    • Families will receive a new $500 tax credit for dependents age 17 or older.
    • The full Child Tax Credit will now be available for families with incomes of up to $200,000 for single households and incomes of up to $400,000 for married households.
    • Lower and Middle-Income families will benefit from a 40 percent increase in the refundable portion of the Child Tax Credit.

  • The Tax Cuts Act will repeal Obamacare's burdensome individual mandate.
    • The repeal of Obamacare's individual mandate will provide relief to households with income below $50,000, which made up nearly 80 percent of the households that paid the mandate penalty in 2016.

  • The vast majority of family farms and businesses will be exempt from the estate tax.
  • Investments in education will be protected under the Tax Cuts Act.
    • Families will now be able to use up to $10,000 from 529 college savings accounts on primary and secondary education.
    • Tax-free stipends for graduate students will be maintained.
    • Student loan interest will continue to be deductible.

  • The Tax Cuts Act preserves tax benefits important to American families.
    • The Earned Income Tax Credit for low-income workers will be preserved.
    • The Child and Dependent Care Tax Credit will be preserved.
    • The Adoption Expense Tax Credit will be preserved.
    • Retirement savings tax benefits will be preserved.

    PRO-GROWTH REFORM FOR AMERICAN BUSINESSES: The Tax Cuts Act enacts pro-growth reform, putting American businesses on a level playing field with foreign competitors.

  • America's corporate tax rate will be lowered from the highest in the developed world to below the Organisation of Economic Co-operation and Development (OECD) average.
    • The corporate tax rate will be cut from 35 percent to 21 percent, below the OECD average of 22.5 percent.

  • Businesses will receive $1.8 trillion in total tax cuts, spurring economic growth and generating more revenue.
    • The Council of Economic Advisers estimates that these tax cuts will grow the economy an additional 3 percent.
    • This economic growth will generate even greater economic opportunity for all Americans.

  • The Tax Cuts Act provides $415 billion in additional tax cuts for S corporations, partnerships, and sole proprietors.
    • More than 90 percent of all American businesses are organized as one of these "pass through" entities.
    • Owners of these businesses will be able to deduct 20 percent of their qualified business income.

  • Businesses will immediately be able to deduct 100 percent of the cost of their capital investments for the next five years.
    • The Tax Cuts Act will get rid of our outdated worldwide taxation system, which penalizes companies headquartered in the United States when they bring foreign profits back home.

  • Companies will be able to bring back future profits without paying additional taxes.
    • A one-time tax will be imposed on corporate earnings stashed overseas, ending the incentive for companies to keep their profits outside of the U.S.

  • A one-time tax of 15.5 percent on cash and cash equivalents will be imposed, as well as a one-time 8 percent tax on illiquid assets.

    ELIMINATING SPECIAL INTEREST TAX BREAKS: The Tax Cuts Act will eliminate dozens of special interest tax breaks and loopholes.

  • The Tax Cuts Act will raise $4 trillion in revenue by getting rid of dozens of special interest tax breaks and closing loopholes for corporations and wealthy individuals.
    • The revenue generated by eliminating these tax breaks and loopholes will be used to help offset the tax cuts for American workers, families, and businesses.

  • Numerous tax breaks and loopholes exploited by special interests will be eliminated.
    • A 20 percent excise tax will be imposed on stock compensation when a company uses corporate inversion to avoid U.S. taxes.
    • The deduction for local lobbying expenses will be eliminated.
    • The loophole used to deduct executive compensation over $1 million will be eliminated.
    • A 21 percent excise tax will be imposed on compensation over $1 million paid to executives at tax-exempt organizations.
    • Members of Congress will no longer be able to deduct their living expenses.

    Contact: White House •
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