WASHINGTON, D.C – Congressman Steve King released the following statement after voting in favor of tax reform legislation that he says will provide a tax cut to Iowans while also providing a stimulus for the creation of jobs in the state. King voted in favor of H.R.1, the Tax Cut and Jobs Act, which passed the House of Representatives today on a vote of 227-205.
“The passage of today’s historic tax reform legislation represents the best opportunity Congress has had in 30 years to reform the nation’s complex and outdated tax code in a manner which will provide Iowans with tax relief, a simpler tax return, and a better economic climate for job creation,” said King.
“This legislation will stimulate the economy and launch the United States onto a growth path that can produce a better than 3% annual GDP growth rate for the next decade or more. In addition, I welcome the inclusion of provisions which increase the size of the standard deduction, increase the size of the child tax credit, preserve the adoption tax credit, allow businesses to immediately write off the full cost of new equipment, lower corporate tax rates to a competitive level, and provide for the full repeal of the Death Tax. This legislation will result in a flatter, fairer, and simpler tax system that will benefit individuals, families, farms, and small businesses throughout Iowa.”
“While I support the package that passed the House of Representatives today, it would have been much improved with the inclusion of the Senate’s provision to repeal ObamaCare’s Individual Mandate fine. Over 52,000 Iowans paid this fine in 2015, and 82% of them had incomes between $10,000 and $50,000. The House would do well to follow the Senate’s lead by supporting the provision repealing the Obama/Roberts ‘ObamaCare tax’ going forward.”
Background:
- An independent analysis of H.R. 1, the Tax Cuts and Jobs Act, prepared by the Tax Foundation, shows that the legislation will result in the creation of 975,000 jobs nationally, including 9,600 in Iowa, over ten years.
- The same analysis indicates that a middle-income family in Iowa will see a gain in after tax-income of $2,246 over ten years.
- 89,133 taxpayers in the 4th District itemize their taxes. As a result of the standard deduction being increased from $6,350 to $12,000 for individuals (and from $12,700 to $24,000 for married couples), many filers will have simpler taxes and a larger total deduction to take.
- 58,340 taxpayers in the 4th District claim the child tax credit; the legislation increases the credit from $1,000 per child to $1,600 per child.
- H.R. 1 provides relief from the unfair “Death Tax,” which often falls hardest on family-owned farms and small businesses, by doubling the exemption and fully repealing the tax in seven years.
- H.R. 1 contains a provision allowing businesses to immediately write off the full cost of new equipment.
- H.R. 1 lowers the corporate tax rate from 35%, the highest in the industrialized world, to 20%. This change will stimulate job creation and encourage more American companies to return jobs and business operations to the United States rather than send them abroad.
- In many cases, ObamaCare premiums are so high, that Americans are forced to pay the unjust ‘Individual Mandate’ fine rather than purchase insurance which doesn’t suit their needs.
- The ObamaCare Individual Mandate Tax, as designated by United States Supreme Court Justice John Roberts, falls disproportionately on Low-Income earners.
- In Iowa, 82% of those paying the ObamaCare tax make less than $50,000/yr. This figure is 80% nationally.
- Repealing the Individual Mandate would save more than $300 billion over ten years.
- The Rules Committee refused to consider any amendments to the legislation. As a result, Congressman King’s H.R. 176- New IDEA legislation, which King offered before the committee, did not receive a vote. Congressman King continues to work for the adoption of his legislation, which would save an additional $254 billion over ten years by eliminating tax deductions employers who hire illegal aliens are currently able to take.
