Scott on Tax Reform: A Historic Win for Hardworking Americans
Washington – This morning, U.S. Senator Tim Scott (R-SC) voted in support of the Senate’s version of the Tax Cuts and Jobs Act. The passage of the tax reform plan marks a major milestone in finally reforming a tax code that hasn’t been overhauled since 1986. The primary beneficiaries of the new plan are typical American families in the low and middle income brackets, who will see substantial decreases in their taxes.
Scott said the following in response to the tax bill passing out of the Senate:
“This is a monumental moment that marks a clear win for the American people. This was always about finding an American solution for American families. It is about helping the average person in this country keep more of their hard-earned income. It makes sure single mothers – like my own who worked 16-hour days to take care of her family – get a better deal under our tax plan. We ensure small business owners, running ‘mom and pop’ shops, have an easier time expanding and creating even more jobs right in their own communities. Our bill also makes sure the jobs of the future are created right here in America. Today, we are one step closer to starting the New Year off with a tax code that the American people both need and deserve.
I want to thank Chairman Hatch, all of my colleagues on the Finance Committee, and my friends in the Senate for their work in helping produce such an important piece of legislation.”
Sen. Scott has had the opportunity to work alongside a number of his colleagues to shape and develop the Senate’s the tax bill. In those efforts he specifically advocated for the following aspects of the bill:
- Inclusion of Scott’s the Investing in Opportunity Act (IIOA) – The IIOA would provide an opportunity for U.S. investors to use a temporary capital gains deferral in exchange for investing the capital in distressed communities across the country. This is an initiative that has the potential to positively impact up to 52 million Americans living in these communities.
- Expansion of the Child Tax Credit – Instead of receiving $1,000/child credit, families will be able to receive $2,000/child, a change specifically made to help average American families.
- Retained the 10% income bracket – To make sure our most economically disadvantaged Americans continue to get taxed at a low rate.
- Doubled the Standard Deduction for Individuals/Families – In an effort to both increase the favorability and simplicity of the individual side of the tax code, the standard deduction was increased from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples. For single parents, the standard deduction will increase from $9,300 to $18,000. This will help lower the amount of a taxpayer’s money that can be taxed by the federal government.
- Simplification of the Tax Code – Nine out of 10 households will be able to do their taxes using the expanded standard deduction, which will save considerable time and resources in filing taxes.
- Relief to Our Small Businesses – Provides tax relief for our small businesses, which are the backbone of our economy.
- Maintained Mortgage Interest Deduction – To ensure homeowners are able to continue to benefit from a popular deduction used by thousands of Americans.
- Reduces Corporate Rate – Reduces the corporate tax rate to 20 percent, helping ensure the jobs of the future are created right here in America. Reducing this rate enjoys bipartisan support, and policymakers including former President Barack Obama, current Senate Finance Committee Ranking Member Ron Wyden (D-OR) and multiple other Democrats have supported bringing the rate down into the 20s.
Over the past six years, the Senate Finance Committee has held 70 hearings on tax reform in the Senate. Last year the Finance Committee split into multiple bipartisan working groups, producing papers that helped shape the bill voted on tonight. During the markup process, dozens of Democratic amendments were considered and given a vote.