This plan won't just help individuals and families put more money in their pockets - it will also create more jobs and boost wages by incentivizing American businesses to do more business in America because of a competitive tax environment. Tax reform is a once-in-a-generation opportunity that will help individuals, families and businesses in East Tennessee thrive under a simplified tax code that lowers the tax burden for low- and middle-income families, allows you to keep more of the money you earn and allows businesses to be more competitive.
Not so permanent, however, are the tax cuts for the average American.
"Today, the House of Representatives passed the most sweeping tax reform legislation this country has seen in over 30 years".
Those estimates come from the non-partisan Joint Committee on Taxation, which says 92% of Americans would either pay less or see little change in their taxes for the next five years under the new plan.
I agree with you - the tax code is now weighted against hard-working people and families. It encourages businesses to invest in the United States, hiring our workers to make products right here. Each year, the mortgage interest and charitable deductions cost the US Treasury $100 billion and $70 billion, respectively.
Key provisions in the bill include a corporate income tax rate for C-corporations of 20 percent; an income tax rate of 25 percent for passive income from "pass-through" entities, including Subchapter S banks, but with restrictions on the ability of active shareholders to claim the lower corporate rate; new limitations on net interest deductibility; and retained homeownership provisions but subject to new caps going forward. If you have any questions or need additional information, please feel free to contact me or contact Joyce Rogers, Senior Vice President of Government Affairs.