Rep. Calvert Votes for Tax Reform that Allows Taxpayers to Keep More of their Money and Grows America’s Economy

Today, Congressman Ken Calvert (CA-42) voted along with a majority (227 to 205) of the House of Representatives to approve the Tax Cuts and Jobs Act, H.R. 1. The Tax Cuts and Jobs Act is the most significant overhaul of the U.S. tax code since the 1986 Tax Reform Act was signed into law by President Reagan.

"I voted for the Tax Cuts and Jobs Act because it allows my constituents in the 42^nd District to keep more of the money they earn and will produce tremendous economic benefits that help working families," said Rep. Calvert. "Despite the misinformed and misleading claims from tax-loving liberals, the Tax Cuts and Jobs Act produces real tax relief – especially for low-income and middle-income households with children. That's not my opinion, that's math. This tax bill will allow a majority of my constituents to opt for the standard deduction and, on average, boost after-tax income for middle-class families in California by $2,932."

The Tax Cuts and Jobs Act creates a simpler, fairer tax code that benefits working families by:

• Doubling the standard deduction: The standard deduction for individual filers will go from $6,300 to $12,000. Married couples filing jointly will be able to deduct $24,000, as opposed to $12,600 in current law. That means the first $24,000 a family earns will be tax free and more families will have a smaller tax liability by taking the standard deduction rather than itemized deductions.

• Lowering tax rates: Reduces the seven current income tax brackets to four brackets – 12%, 25%, 35%, continues to maintain 39.6% for high-income Americans. That means more of the money earned in the lower and middle-income tax brackets will be taxed at a lower rate.

• Increasing the Child Tax Credit: Raised from $1,000 to $1,600 per child, while lifting the income phase-out threshold so more families benefit. The bill also creates a new Family Credit, which provides a credit of $300 for each parent and non-child dependent.

• Preserving the home mortgage interest deduction: Existing mortgages are grandfathered so that their tax treatment is unchanged. The bill maintains the home mortgage interest deduction for newly purchased homes up to the first $500,000 borrowed.

• Preserving the property tax deduction: Continues to allow people to write off the cost of state and local property taxes up to $10,000.

• Preserving the Child and Dependent Care Tax Credit: The tax credit is unchanged.

"My California delegation colleagues and I joined with other members from high-tax states to advocate for keeping the mortgage interest deduction and the property tax deduction. Modified versions of these deductions remain in the bill and I will continue to advocate for their inclusion in the final tax reform bill that is negotiated between the House and the Senate. I am confident we will continue to enhance the tax bill to deliver significant tax relief for California taxpayers."

The Tax Cuts and Jobs Act will grow our economy, incentivize businesses to invest here in America, create jobs and spur wage growth by:

• Making America's tax code competitive in the global economy: The bill lowers tax rates on job creating businesses of all sizes, including reducing the tax rate on "pass-through" business income to no higher than 25% and lowering the corporate tax rate to 20%.

• Encouraging investments now with full and immediate expense deductions: The full cost of new capital equipment and other expenses will be fully and immediately deductible.

• Modernizing our international tax system: Ends our outdated "worldwide" tax system that results in double taxation for many of our nation's job creators, while making it easier and far less costly for American businesses to bring home foreign earnings.

• Eliminating incentives for shifting jobs overseas: The bill ends existing tax code provisions that reward companies for shifting jobs, profits, and manufacturing plants abroad.

"We know from history the tremendous economic impact of letting our job creators keep and invest their money rather than forfeiting it to the federal government. After the Reagan tax cuts the economy created nearly 15 million jobs over five years and, between 1982 and 1989, real per-capita-income rose by 18 percent. I have no doubt that we can further accelerate economic growth by incentivizing job creators to bring foreign profits back home to America and by allowing them to reinvest more in their workforce."

"The Tax Cuts and Jobs Act benefits 42^nd District taxpayers by allowing them to keep more of the money they earn, by fueling job and wage growth, and by fixing our broken tax code to create a fairer, simpler code."

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