The following was provided by Congressmen Clay Higgins’ office concerning tax cuts.
I want to give you a quick update on Tax Reform 2.0, which passed through the U.S. House of Representatives last week. This includes three bills that make President Trump's tax cuts permanent, expands savings options for American families, and encourages small business innovation. This is a big win for all Americans.
Since passing historic tax cuts last year, we have seen a reignited American economy, millions of new jobs created, record low unemployment, bonuses, pay increases, and new investments across the country. American workers now keep more of their money, and Tax Reform 2.0 makes those tax cuts permanent.
According to the nonpartisan Tax Foundation, locking in tax cuts for individuals and small businesses will create 1.5 million new jobs, boost wages by 0.9%, and increase long-run GDP growth by 2.2%. We're going to keep growing our economy and producing wins for American workers.
Here are some of the specific changes included in Tax Reform 2.0 that will benefit your family:
Protecting Middle-Class Tax Cuts
- Makes lower tax rates permanent for individual filers
- Locks in the enhanced Child Tax Credit
- Creates a Paid Family Leave Tax Credit
Promoting Family Savings
- Allows small businesses to join together to create 401(k) plans to their workers
- Eliminates the age limit on IRA contributions
- Expands 529 Education savings accounts, allowing them to be used for apprenticeship fees, homeschooling costs, and paying off student debt
- Allows families to access retirement accounts without penalty when welcoming a new child by birth or adoption
- Creates a new Universal Savings Account (USA) to offer a flexible savings tool for families to use at any time
Encouraging Small Business Innovation
- Allows new small businesses to write off more of their initial start-up costs
- Expands access to research & development credits for start-up businesses
These reforms build on the successes of the Tax Cuts & Jobs Act and major regulatory reform that has reignited our economy. We continue to push for conservative, pro-growth policies that create jobs and grow the economy. As Tax Reform 2.0 heads to the Senate, I am hopeful that it will be considered and passed quickly.