(Washington, DC) – Congressman Doug LaMalfa (R-Richvale) issued the following statement after the bicameral conference committee reached a consensus on H.R. 1, the Tax Cuts and Jobs Act. The House and Senate will each vote on final passage of the bill next week.
LaMalfa said: “As my staff and I review this bill through the weekend, this appears to be a bill that will benefit America’s working families. Over 70% of residents in the 1st District already use the standard deduction – which will be nearly doubled – and will see an immediate tax break when this legislation goes into effect. Additionally, over 45,000 North State families with children will receive a tax credit of $2,000 per child under the expanded Child Tax Credit. Middle income families will be helped by corporate tax reform, which will create jobs. Finally, with Obamacare’s individual mandate repealed, taxpayers will no longer pay a penalty if they can’t afford rapidly rising healthcare costs. Tax reform will spark our economy and greatly benefit the vast majority of filers in my district.”
Highlights of the final version of H.R. 1, the Tax Cuts and Jobs Act:
- Increases the Standard Deduction from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples.
- Cuts marginal tax rates at every income level.
- Preserves Home Mortgage Interest deduction up to $750,000.
- Preserves credits and deductions for adoption, medical expenses, teacher expenses, and student loan debt.
- Child Tax Credit increased from $1,000 to $2,000.
- $1,400 of the Child Tax Credit is available to families even if they pay no income tax.
- Corporate Tax rate lowered to 21%.
- Small Business Tax Rate capped at 20%, down from 29.6%.
- Repeals the Obamacare Individual Health Insurance Mandate.
- Boosts exemption for the Alternative Minimum Tax (AMT) from $78,750 to $500,000.
Repeal of ACA Individual Mandate Penalty (Health Care Individual Responsibility Payment):
This is the fine levied on individuals for failure to maintain health insurance coverage and is levied per month without insurance.
- Number of CA01 filers fined in 2015: 15,735.
- Average fine in 2015/Average Savings under HR1: $468.82.
- Total CA01 savings under H.R. 1: $7,377,000
- For more information on ACA fine, click here.
Debunking false claims about the Tax Cuts and Jobs Act:
The Washington Post: Senate Democrats falsely claim GOP tax plan will raise taxes for most working-class families
The Post gave this claim four Pinocchios, stating: “In their haste to condemn the GOP tax plan, Democrats have spread far and wide the false claim that families making less than $86,100 on average will face a hefty tax hike. Actually, it’s the opposite. Most families in that income range would get a tax cut.”
The Washington Post: Schumer’s Claim That the GOP Is ‘Kicking 13 Million People Off Health Insurance
The Post gave this claim two Pinocchios, stating: “CBO, in estimating the impact of repealing the individual mandate, is mostly describing a voluntary action of people choosing not to buy health insurance. That’s not the same as ‘kicking off’ 13 million people… Senate Democrats need to more accurately describe the CBO report.”
The nonpartisan Joint Committee on Taxation (JCT) estimates that the federal government would see an increase in revenue of $458 billion over the next decade from the economic growth created under the Tax Cuts and Jobs Act, while growing the nation’s GDP on average by 0.8 percent.
Thomas Barthold, Chief of Staff for JCT said, “In 2019, our projections…would say that there is a tax benefit to all income categories as we measure them.”
The nonpartisan Tax Foundation: “Our results indicate a reduction in tax liability for every scenario we modeled, with some of the largest cuts accruing to moderate-income families with children and fixed-income retirees…All of our sample filers receive a tax cut, but the size of that reduction varies. The significantly higher standard deduction, combined with a more generous (and more broadly available) child tax credit, drives the reductions in tax liability for low- and middle-income filers.”
Many claimed this legislation would harm graduate students – this has been proven to be untrue, as H.R. 1 continues to exempt the value of reduced tuition from taxes.
1st District Tax Facts:
In the 1st district, over 70% of taxpayers do not itemize and instead use the standard deduction. 79% of those using the standard deduction earn less than $100,000 annually. These people will see a direct and guaranteed tax cut. This component is aimed squarely at cutting working and middle class taxes.
Over 45,000 North State families save over $27 million annually thanks to the increase in the Child Tax Credit, which grows 100% to $2,000 per child, and the bill keeps the important Adoption Tax Credit and Child & Dependent Care Tax Credits in place.
Congressman Doug LaMalfa is a lifelong farmer representing California’s First Congressional District, including Butte, Glenn, Lassen, Modoc, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou and Tehama Counties.