Last Thursday, House Republicans passed the Tax Cuts and Jobs Act, a historic and sweeping tax reform bill that will bring tax relief to all Americans. With this bill, we are creating a fair, simple tax system that allows Americans to keep more money in their pockets, ends lobbyist loopholes and special-interest exemptions, and makes everyone play by the same rules.
According to most recent data available from the IRS, about 81 percent of filers in our district currently claim the standard deduction. Of the 19 percent of our district that does use the itemized deduction, those individuals’ average deduction is $22,038.40.
This plan doubles the standard deduction, which is the biggest win that the tax code can deliver to average Americans. Under the new standard deduction the first $12,000 for single filers and $24,000 for married couples are tax-exempt. Thus, 81 percent of our filers will benefit right off the top with twice as much of their income tax-free next year.
Small businesses play a critical role in the American economy, accounting for 55 percent of all U.S. jobs. In addition to lowering the tax rate, small businesses will also be able to write off capital investments, making it easier to update and modernize equipment, scale businesses, hire more workers, and offer more products and services at better prices.
Congressman Daniel Webster represents The Villages in the U.S. House of Representatives.