Dec 25 2017
Website Calculators Offer a Way to Estimate Tax Plan’s Individual Impact
The House and Senate have passed the final version of the “Tax Cuts and Jobs Act.” With President Trump’s signature, the bill becomes the first major rewrite of the tax code since the Reagan Administration. More importantly, middle-class families will see tax relief. After years of stagnant wage growth, this relief could not come soon enough. I voted in favor of the tax reform plan because it serves the best interests of the American people.
Fox News producer Maxim Lott has built a website taxplancalculator.com and The New York Times has created an online tax bill calculator to offer estimates of how the new plan could impact your taxes for 2018. For example, a family of four earning $73,000 could see their taxes cut by an estimated $2,000. A family of four earning $40,000 could save an estimated $1,400. The plan cuts income tax rates across the board, expands the standard deduction, and doubles the Child Tax Credit, allowing Americans to bring home bigger paychecks. Most should see this reflected in their paychecks as early as February of next year. Bear in mind, next April’s tax returns for 2017 will reflect the old rates.
Over the past three decades, our tax code has become more and more out of date, standing in the way of economic growth and opportunity. The new plan simplifies the system, removing loopholes that benefit only special interests. It also looks ahead, laying the groundwork for an economy that can thrive and be competitive in a 21st-century global marketplace. Under the new tax code, our nation’s job creators are empowered to invest in new equipment, expand their operations, and hire more workers. With the plan’s passage, companies have already announced bonuses for employees and new jobs. Likewise, a significantly lower corporate tax rate helps encourage companies to do business here in the United States, instead of choosing to invest their assets overseas.
Obamacare Loses Central Mandate
Not to be overlooked is the successful repeal of Obamacare’s individual mandate tax, which penalizes Americans who choose not to purchase insurance. This penalty demonstrates just how much the health-care law has failed to provide affordable care. Millions of Americans are paying the penalty rather than buying expensive insurance they cannot afford.
Striking the individual mandate removes one of the health-care law’s most onerous and unpopular provisions, which has disproportionately hurt low-income Americans. Data from the Internal Revenue Service show that most of the Americans who have paid the individual mandate penalty earn an adjusted gross income of less than $50,000. By eliminating a central pillar of the disastrous health-care law, Congress moves closer to its full repeal and replacement with a market-driven plan that works.
Tax Plan Fosters Energy Independence
Another major component of the tax plan is its promotion of America’s energy security. The bill opens 2,000 non-wilderness acres for responsible oil and gas development in the 1002 Area of Alaska’s Arctic National Wildlife Refuge. Along with this long-awaited energy exploration comes the potential for substantial job creation and deficit reduction. In addition, Gulf Coast states like Mississippi stand to benefit from the tax plan’s short-term increase in offshore revenue sharing, which can be used to restore our coastline and safeguard it from future hurricanes.
As we gather with loved ones during this special Christmas season, I hope families in Mississippi and across the country will be able to look forward to the new year with renewed confidence in their livelihoods, in the economy, and in our nation’s future. Tax reform is a truly historic moment that will usher in a new chapter for American workers, businesses, and communities.