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House Passes Historic Tax Reform

WASHINGTON – The House of Representatives voted 227-203 to pass the conference report to H.R. 1, the Tax Cuts and Jobs Act. U.S. Representative Bill Shuster (R-Hollidaysburg) voted in favor.

“For too long, a complicated and broken tax code has held back American workers and families. That changes today,” said Congressman Bill Shuster. “Thanks to President Trump’s leadership, middle-class America will notice immediate relief next year, and a modernized rate for American businesses will increase stagnant wages for American workers and create jobs nationwide.”

When the Tax Cuts and Jobs Act (TCJA) becomes law, Americans at every income level will see tax relief. The Tax Foundation found in its analysis of the TCJA a “reduction in tax liability in 2018 for every scenario we estimated, with some of the largest changes in after-tax income accruing to moderate-income families with children.”

A typical family of four with the median household income will see a tax cut of more than $2,000, nearly a 58 percent reduction in their tax bill. A single parent with one child, earning $41,000 a year will see a tax cut of more than $1,300, a reduction of nearly 73 percent in their tax burden.

The 47,750 taxpayers in Pennsylvania’s 9th Congressional District who claim the child tax credit will see the credits doubled, from $1,000 to $2,000, with $1,400 being refundable.

Currently, more than 55,000 taxpayers in the 9th Congressional District itemize their taxes. Under the TCJA, many taxpayers will have their annual taxes simplified to ‘postcard’ filing, as a result of the nearly doubling the standard deduction, from $6,500 to $12,000 for individuals, and from $13,000 to $24,000 for married couples.

The U.S. Chamber of Commerce found the TCJA will create 975,000 jobs nationwide and nearly 40,000 jobs in Pennsylvania.

A summary of the Tax Cuts and Jobs Act can be found here, and the bill text can be found here.

The Senate will be voting on the Tax Cuts and Jobs Act later this evening.

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