Three decades ago, Ronald Reagan delivered our country tax reform that spurred such enormous economic growth and prosperity, that it would distinguish him as one of the greatest presidents in our nation’s history. But since that time, the size and complexity of our tax code have multiplied immensely, and with this, so have the burdens it places on hardworking American families.
This is just one reason why the people of Texas’ 4th District and folks all across the country rose up last year to install new leadership committed to reversing the economic malaise of the previous eight years. They believe — like Reagan did — that allowing folks to keep more of their hard-earned dollars is the right way to restore the economic competitiveness of our country and reopen the door to the American dream.
As a firm believer that more economic freedom is the key to more prosperity, I was proud to vote in Congress for the passage of the biggest tax cut package our country has seen since Reagan. More than 30 years in the making, the passage of the Tax Cuts and Jobs Act represents a huge win for the American people.
Our legislation focuses on the middle- and lower-class Americans who are burdened most by our current tax code. It provides specific relief for American families, and it puts wind in the sails of small business owners striving to create new jobs. All of these provisions combined will act as jet fuel for our economy — truly making America competitive again.
Here at home in the 4th District of Texas, these tax cuts will result in putting more than $700 million directly into the hands of the hardworking people I represent, instead of giving it to Washington bureaucrats. One of the primary ways we’ll do this is by doubling the standard deduction from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples — effectively creating an expanded zero percent tax bracket. This will directly benefit and provide immediate relief to the 81 percent of tax filers in Grayson County who currently benefit from this deduction.
We will also repeal one of the most harmful Obamacare provisions: the individual mandate, which unfairly penalized middle- and lower-class families who just can’t afford to pay for skyrocketing Obamacare premiums. Obama’s individual mandate has been slamming folks with a tax equal to 2.5 percent of their household income – and 80 percent of those paying this unfair penalty make less than $50,000 a year.
Additionally, our tax cut plan focuses on supporting families by expanding the Child Tax Credit from $1,000 to $2,000, so we can make sure families can cover their everyday expenses and prepare for the future. On top of this, I fought hard to maintain the Adoption Tax Credit, so we can continue encouraging families to open their homes to children in need.
Our plan will also reduce burdens on small business owners who are responsible for creating two-thirds of our country’s new jobs each year. Specifically, we’ll be lowering the tax rate on the hard-earned business income of Main Street job creators to the lowest level we’ve had in decades. By doing this, we’ll bring 80,000 new jobs to the state of Texas.
We’ll also make America more competitive on the world stage by lowering the corporate tax rate from 35 percent to 21 percent — the largest reduction in our nation’s history. This will finally stop businesses from being forced to move overseas to escape the highest corporate tax rate in the industrialized world, which means more American jobs for the American people.
By tackling the challenges of an overly burdensome and overly complex tax code that have festered for more than 30 long years, we’re finally delivering Americans the relief they’ve been asking for — the relief that Ronald Reagan advocated for when he said “the American dream belongs to you.”
John Ratcliffe, a Republican, represents Texas’ 4th congressional district, which includes Grayson and Fannin counties among others. Contact him through his website: https://ratcliffe.house.gov.