Legislators walk party line as tax reform passes
Congresspassed what is being called "the most sweeping tax rewrite in decades" in a 227-203 party-line vote. Though the bill has been met with criticism, LaHood said he believes the reform benefits people in his district and businesses nationwide.
"I saw my focus as related to tax reform as two focuses: How do we help the middle-class and lower middle-class people that have seen their taxes go up at a federal and state level, and how do we get the business climate roaring again to make a healthier and thriving economy with more jobs and more economic opportunity?" LaHood said. "I think the final bill achieves that."
Changes that will result from the bill include lower income tax rates, resulting in less money being taken from many paychecks beginning in February.
The bill also eliminates Affordable Care Act penalties. The mortgage interest deduction will remain in place for homeowners with existing mortgages. The standard deduction has been raised to
All of those things should result in more money for the middle class, LaHood said.
"I look at my district, I look at middle-class folks, and they benefit from this bill," he said. "I think the talking points and rhetoric from the
Durbin, meanwhile, blasted the measure as the biggest tax break for the wealthiest people in the history of tax reform.
"It turns out that, in 2027, 83 percent of the tax breaks in this bill go to the top 1 percent of wage earners in America," Durbin said. "How could you sit down and write a tax bill that is so lopsided to the wealthiest people in America?"
The bill also will cut the corporate tax rate from 35 percent to 21 percent, which LaHood said will keep the
"Every one of my employers in my district have been supportive of the tax bill," he said. "Whether it's the
The largest individual tax cuts would go to higher-income groups, although all individual groups should see a tax cut. However, those rates will only be in effect for eight years, and organizations such as the Tax Policy Center claim that rates for the middle and lower classes in 10 1/2 years will be even higher than they are now, while those in higher-income brackets will continue to have lower rates.
The bill also includes a provision that will repeal the itemized deduction of health care expenses. The
"In their plan,
LaHood believes that, despite criticism and mild-to-poor public reception, the American people will see the benefits of the plan when it begins to take effect next year and noted that many economists believe the bill will be a positive for the economy.
"I think they'll understand when they get more money in their paychecks come January and February," LaHood said. "I think that it will only get better from here. ... We believe this is the right approach to take and I think the more people see the benefits to the economy, the more they will agree."
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