Gianforte: “Tax Reform Provides Hard-Working Montanans With Needed Tax Relief”
Washington, D.C. – Today, the Committee on Ways and Means released legislation to overhaul the nation’s tax code for the first time in 31 years. The Tax Cuts and Jobs Act lets hard-working Montanans keep more of what they earn. Under the measure, a typical middle-income family of four receives a tax cut of $1,182.
The legislation lowers individual rates for low- and middle-income Americans, helps families with the expenses of raising their children, and makes it easier to file taxes. The measure reduces rates for businesses of all sizes and encourages business investment, which grows the economy, jobs, and wages.
Montana Congressman Greg Gianforte welcomed the Tax Cuts and Jobs Act.
“Tax reform provides hard-working Montanans with needed tax relief. The plan reduces rates for low- and middle-income Montanans, allowing them to keep more of what they earn. A typical family of four, earning $59,000, will receive a $1,182 tax cut.” Gianforte said.
“This tax reform legislation promotes economic growth, creates more Montana jobs, increases Montanans’ paychecks, and creates a fairer, simpler system,” Gianforte stated.
“Montana families will see relief with lower rates, the doubling of the standard deduction, and the expansion of the child tax credit,” Gianforte said. “The legislation preserves the home mortgage interest deduction, continues the deduction for charitable contributions, retains popular retirement savings options, and continues to allow people to write off the cost of state and local property taxes.”
“Importantly, the bill also benefits Montana’s family farmers, ranchers, and business owners by immediately reducing and ultimately repealing the death tax,” Gianforte added.
“The legislation makes the U.S. competitive with other countries again. This tax reform bill brings back jobs to the U.S.,” Gianforte said, “and it encourages business investment which will jump start our economy.”
The Tax Cuts and Jobs Act is a pro-growth plan to overhaul our nation’s tax code for the first time since 1986. The legislation ensures hard-working Montanans will can keep more of what they earn, encourages Montana businesses to invest and hire more workers, and leads to greater economic growth.
The bill lowers tax rates to zero, 12 percent, 25 percent, and 35 percent, while maintaining the current rate for high-income Americans. The standard deduction nearly doubles to $24,000 for couples and $12,000 for individuals. The legislation establishes a new family credit, which includes expanding the child tax credit.
The bill limits the maximum tax rate for small business income to 25 percent – the lowest rate on small businesses since World War II. The measure lowers the corporate tax rate to 20 percent – down from 35 percent, among the highest in the industrialized world. The legislation encourages business investment by allowing businesses to immediately write off the full cost of new equipment.
Finally, the bill reduces and ultimately repeals the death tax, which will benefit family farmers, ranchers, and small businesses in Montana.
The Ways and Means Committee is expected to take up the bill on Monday, November 6.