U.S. Rep. Rodney Davis, R-Taylorville, on Monday introduced H.R. 6760, the Protecting Family and Small Business Tax Cuts Act, which makes the individual tax cuts included in the Tax Cuts and Jobs Act permanent.
The bill, which is part of the Tax Reform 2.0 package, is cosponsored by Rep. Mark Meadows (R-NC), Rep. Mark Walker (R-NC), House Ways and Means Committee Chairman Kevin Brady (R-TX), and all other Ways and Means Committee Republicans.
"Our economy is booming and we have seen historic growth since the passage of the Tax Cuts and Jobs Act in December,” said Davis. "We must continue to build on the historic tax relief for the millions of Americans who need it the most by making the individual rates permanent. 90% of workers are seeing bigger paychecks and the average family of four making the median income of $78,509 in my district will save $2,224 next year. Tax Reform 2.0 will continue to grow our economy, create new jobs, and provide certainty for families.”
“Tax Reform 2.0 represents an outstanding set of reforms proposed by Chairman Brady and the Ways and Means Committee,” said Meadows. “These are pro-family and pro-worker improvements to the tax code that will help continue guiding the American economy down its current record-breaking path, making the individual tax cuts permanent and removing burdens from small businesses. Republicans should use every single day we have the rest of this year to continue bringing relief like this to American workers and families. I’m proud to be an original cosponsor and looking forward to helping see it through with my colleagues.”
The original tax reform bill passed by the House on November 16, 2017 made the individual rates and deductions permanent, but eventually were made temporary by the Senate to abide by budget reconciliation rules. Currently, these provisions expire in 2025. H.R. 6760 would make them permanent.
H.R. 6760 would make permanent the tax provisions for individuals and pass-through entities in the Tax Cuts and Jobs Act, including:
-Lower rates ensure individuals at every income level will see a tax cut.
-Based on IRS numbers, the average family of four making the country's median income of $78,509 will receive a $2,224 tax cut.
-Doubles the standard deduction to $12,000/$24,000, which nearly three in four people in Illinois currently takes.
-Doubles the Child Tax Credit to $2,000 with up to $1,400 refundable.
-Retains popular deductions like mortgage interest (capped at $750,000 for new homes), state and local taxes (SALT) (capped at $10,000), medical expenses, and charitable deductions.
-Simplifies so nearly 90% of Americans will be able to file their taxes on a postcard
-A first ever 20% tax deduction for small business owners who are the backbone of our Main Streets.