Uplift Shiawassee photo
Yesterday, the House of Representatives passed H.R.1, the Tax Cuts and Jobs Act, a historic overhaul of the federal tax code and the first major reform since 1986.
The legislation doubles the standard deduction for individuals and married couples to $12,000 and $24,000, respectively.
It also doubles the child tax credit to $2,000 per child, which will benefit families in the Fourth District. There have been 43,832 families in the Fourth District claimed the child tax credit.
The legislation includes deductions for medical expenses, charitable contributions, mortgage interest, adoption expenses, and state and local taxes. There is a continuation of the $250 deduction for teachers buying school supplies, and the deduction for student loan interest. The tax-free treatment of tuition waivers for graduate students also continues.
Additional background on the legislation is available here.
Congressman John Moolenaar voted for the legislation and made the following statement:
"This is historic tax relief for hardworking, middle-class Michigan residents, especially those living paycheck to paycheck. Parents have told me how much the $2,000 child tax credit will help them raise their families. They're going to keep more of their own money to provide for their kids.
Small business owners who see their profits come in as personal income are going to get a tax cut and many of them in our community have said this tax relief will help them grow their businesses here in our community, expanding facilities, hiring more people and paying higher wages.
Simply put, this tax relief legislation means Michigan families will keep more of their own money and that is always a good thing."
Tax Reform By The Numbers
$2,000: The new child tax credit, increased from $1,000.
43,832: The number of taxpayers in Congressman Moolenaar's district who claim the child tax credit.
$12,000: The new standard deduction for individual filers, increased from $6,000.
$24,000: The new standard deduction for married filers, increased from $12,000.