Barletta Votes in Favor of Historic Tax Cuts
WASHINGTON – It’s been 31 years since the last significant reform to the tax code was undertaken. Today, the U.S. House of Representatives passed H.R. 1, the Tax Cuts and Jobs Act, by a vote of 227 – 205, marking another step forward towards tax cuts for the middle class and businesses. Barletta voted in favor of the legislation.
“This is historic. It’s been 31 years, but finally the House has shown the American people they are serious about getting Washington off the backs of middle class families,” Barletta said following passage. “For a generation, America has seen stagnant growth and dwindling opportunities. Wages have frozen, while the federal government has redirected more and more money out of the pockets of middle class Americans, and into the coffers of unelected Washington bureaucrats. Today, we signaled that the old way of doing business is over. The era of stagnation is coming to a close. I urge the Senate not to stand in the way of the hopes and dreams of millions of American families. No more obstruction. They should act immediately to provide relief for the middle class and small businesses.”
The Tax Cuts and Jobs Act provides significant relief for the workers and middle class families of Pennsylvania by simplifying and lowering rates for individuals, making America the global jobs magnate, and cutting red tape and taxes on small businesses, the backbone of our countries economy. According to estimates, under this legislation, over 39,000 new jobs would be created in the Commonwealth, and after-tax income for Pennsylvania’s middle class families would increase by approximately $2,600.
Specifically, this legislation provides significant relief to American families by doubling the standard deduction to $12,000 for single filers, and $24,000 for joint filers. The bill increases the child tax credit from $1,000 to $1,600 per child, preserves the Child and Dependent Care Tax Credit, and creates a new family flexibility credit providing $300 for each parent and non-child dependent to help all American families with their everyday expenses.
Further, H.R. 1 provides much needed relief to main street small employers by cutting the tax rate on hard-earned business income to a top rate of 25. Additionally, the bill provides a new, low tax rate of 9% for businesses earning less than $75,000 in income to help startups and mom and pop shops who fuel innovation and job creation in communities across the country.
Finally, the bill addresses the United States’ corporate tax rate, which is the highest in the developed world. H.R. 1 lowers the corporate rate from 35% to 20%, which will prevent American jobs from moving overseas. This bill eliminates the incentives put in place by the Obama Administration that now reward companies for shifting jobs, profits, and manufacturing plants abroad.