For the last several months, I have focused several bulletins on what House Republicans are doing to bring tax reform to life. Now, I am pleased to say the bill has been introduced, and we are moving full steam ahead in the House of Representatives.
Recently, Ways and Means Chairman Kevin Brady introduced the Tax Cuts and Jobs Act, legislation that delivers what the American people are asking for - more jobs, fairer taxes and bigger paychecks. With this bill, a typical middle-income family of four, earning $59,000 (the median household income) will receive a $1,182 tax cut.
I have heard time and time again from Missourians that they want more money in their pocket. The Tax Cuts and Jobs Act reduces the tax rates for low and middle income Americans, and roughly doubles the standard deduction, protecting up to $24,000 of your family's take-home pay each year from taxes. According to the Tax Foundation, the Tax Cuts and Jobs Act will create, in Missouri alone, 19,166 new full-time jobs and increase median household income.
First and foremost, this legislation finally brings simplicity and fairness in the tax code by eliminating costly deductions that drive up tax rates and add frustration when it comes to doing your taxes. With passage of this legislation, the vast majority of individuals and families will be able to file their taxes on a form as simple as a postcard.
The legislation also takes action to help you raise your children and support your family. This bill establishes a new family credit, which includes expanding the child tax credit from $1,000 to $1,600 to help parents with the cost of raising children. It also includes a credit of $300 for each parent and non-child dependent living with the taxpayer to help all families with their everyday expenses.
In addition, this legislation lowers tax rates on businesses of all sizes so job creators can focus on hiring workers and investing in our local communities. This bill encourages corporations to invest in the United States and to bring foreign earnings back to U.S. soil. Furthermore, it reduces the corporate tax rate from 35 percent to 20 percent, bringing U.S. corporations in line with foreign competitors by reducing the highest corporate tax rate in the developed world. This will allow companies to invest in jobs and factories here at home unleashing the U.S. economy. Studies show that these rate cuts could grow the economy by 975,000 jobs.
Reforming our nation's tax code is not an easy task. However, House Republicans are committed to a pro-growth bill that will help, not hurt, American families and individuals. There is a lot of information in the legislation and my staff stands ready and willing to answer any questions you may have. As the House and Senate continue to work on tax reform, I will continue to update you on its progress.
U.S. Rep. Blaine Luetkemeyer, R-Mo., shares his perspective each week on national issues, including ones that affect Missouri. He represents the state's 3rd District, which includes Jefferson City. His local office can be reached at 635-7232.