WASHINGTON, D.C. – Today, the U.S. Senate passed the conference report for the Tax Cuts and Jobs Act. The bill now needs final approval by the House of Representatives before it heads to President Trump’s desk for signature into law. U.S. Senator Deb Fischer (R-Neb.) released the following statement after voting in support of the legislation:
“Congress is following through on a once-in-a-generation opportunity: delivering tax relief to families in Nebraska and across the country. The first comprehensive, pro-growth, tax cuts and tax reform bill in 31 years is just one step away from the president’s desk. Because of this legislation, many Americans will have bigger paychecks, our businesses will have more opportunities to invest and grow, and our country will regain our competitive edge in the global marketplace.
“This bill also creates the first nationwide paid family leave policy in U.S. history. I worked with families and stakeholders for four years on this historic provision. It will impact the everyday lives of working women and families in a positive and meaningful way.”
Highlights of the Tax Cuts and Jobs Act:
Relief for Middle-Class Families
Lowers tax rates so Americans can keep more of their hard-earned money.
- Tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%
Nearly doubles the standard deduction, protecting the first $24,000 married couples earn, and the first $12,000 individuals earn, from federal taxes.
Continues to allow Americans to take a combined state/local property, sales, and/or income tax deduction of up to $10,000.
Expands the child tax credit from $1,000 to $2,000 per child. The tax credit is fully refundable up to $1,400 per child. A family with two kids will be able to keep up to $4,000 more dollars every year.
Eliminates Obamacare’s individual mandate penalty tax.
Includes Fischer provision, which incentivizes businesses to offer workers up to 12 weeks of paid family leave with a tax credit as big as 25%. Click here to read Fischer’s op-ed in The Washington Post for more information.
Only 28 percent of Nebraskans itemize their taxes. Tax reform will move that total to less than 10 percent nationwide. For those who do itemize, mortgage interest, charitable contributions, and medical expenses will still be deductible.
Deductions for things like student loan interest and teacher expenses will be preserved as well.
The adoption tax credit is preserved, tuition waivers for graduate students remain tax-free, and retirement savings plans remain tax-advantaged.
Unleashing Small Business Growth
Provides a 20 percent tax deduction for most small businesses.
Allows businesses to fully write off new investments for five years, and is gradually phased out over five years after that.
Keeping America Competitive Globally
Lowers the corporate tax rate to 21 percent so corporations can stay competitive in the global economy.
Modernizes the U.S. tax system to make it easier for businesses to bring home foreign earnings to invest in growing jobs and wages.