Scott: Final passage of tax reform “Big win for middle class families, U.S. economy”
Earlier this morning, after months of deliberation and discussion, the U.S. Senate successfully passed the historic tax reform package, Tax Cuts and Jobs Act, a yearlong process U.S. Senator Tim Scott (R-SC) has been intimately involved with since the working group first launched.
The final bill will protect more of Americans’ money from being taxed, enhances significant credits like the Child Tax Credit, and maintains important features like the Earned Income Tax Credit, and deductions for mortgage interest and charitable contributions.
Throughout the process, Scott was able to advocate for key provisions that made it in the final version of the tax bill including the following:
- 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. Scott worked extensively with several of his colleagues, especially Sen. Marco Rubio (R-FL), on this provision and in the end, was able to secure a larger break for families, by making $1,400 of the tax credit fully refundable for taxpayers in the lower tax brackets. Read more about their work together here.
- Retained the 10% income bracket – Wanted to make sure our most economically disadvantaged Americans continue to get taxed at a low rate.
- Inclusion of the Investing in Opportunity Act – The IIOA will 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.
- 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.
- Prevented the “Rothification” of individual retirement accounts – By preserving the unique features of the IRA, taxpayers will be able to continue to save for their future without having to worry about immediate taxation by the federal government.
- Maintained Mortgage Interest Deduction – Wanted to ensure homeowners are able to continue to benefit from a popular deduction used by thousands of Americans. He was behind key negotiations that helped to make the home mortgage interest deduction available up to $750,000.
- Relief to Our Small Businesses – Helped to advocate for tax relief for our small businesses, which are the backbone of our economy.