Amodei Statement on House Passage of the Tax Cuts and Jobs Act
Submitted by editor on Thu, 11/16/2017 - 1:25pm
WASHINGTON, D.C. – Nevada's 2nd District Congressman Mark Amodei released the following statement after voting in favor Thursday of H.R. 1, the Tax Cuts and Jobs Act, a comprehensive plan to reform the nation’s tax system:
“After having devoted almost the entire week with everyone in my Washington office to determine how this bill would affect individual taxpayers, joint filing taxpayers, and businesses, I’ve come to the conclusion that for the vast majority of federal taxpayers in CD-2, this bill results in simplified filing and a tax cut for most CD-2 federal taxpayers.
“My conclusion is based on some of the following facts:
— “Presently, only 25 percent of Nevadans itemize, of those 25 percent, the top three itemized deductions are: the mortgage interest deduction, the charitable giving deduction, and the property tax deduction.
— “By far, the largest itemized deduction is the mortgage interest deduction. The average amount of that deduction in Nevada is about $2,500.
— “As a result of the changes in H.R. 1, which double the standard deduction for individuals from $6,000 to $12,000, the average mortgage deduction is more than exceeded in terms of tax benefit to the filer. Add to that point the fact that the changing of tax brackets results in most taxpayers, with an annual income below $260,000, will be moved to a lower tax bracket.
“I encourage individual and joint filers to compare last year’s tax return to the new plan by using the increased standard deductions and lower tax brackets to see what their treatment is individually. However, for the average household in CD-2 with an annual income of $65,000, the federal tax cut affect is over $12,000 a year with the new brackets and standard deductions.
“For those who wish to continue itemizing, the mortgage income deduction, the charitable giving deduction, and the property tax deductions are preserved and subject to limits which are well above the average of those presently claimed by Nevadans who itemize.
“With respect to the effect on businesses, Main Street job creators will see their tax rates reduced through the lowering of the maximum tax rate on business income to no more than 25 percent. Additionally, federal tax rates on corporate taxable income will see a decrease from the highest rate of 35 percent to a flat corporate tax rate of 20 percent. Each of these changes will help businesses and corporations expand, hire new employees, increase wages, and also give them the resources they need to stay competitive in the global marketplace.
“For the newborn deficit hawks, clearly the objective of this legislation is to spur personal and commercial economic activity which will result in increased tax collections as a result of a growing and dynamic economy. While opinions vary on this, we believe the history lessons from the Kennedy Administration and the Reagan Administration are persuasive.
“This represents the beginning of the legislative process on tax reform. All eyes now turn to the Senate as they work on a tax reform bill that is not identical to this one. I hope they have better luck with this issue than they had with the health care issue. In any event, I expect the issue to continue to evolve in the coming weeks, and we’ll stay with it until it’s done. Happy Thanksgiving.”
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