Young: The last day of an outdated tax code: Capitol Solutions

Statement

Almost four months ago, Congress passed and President Trump signed into law a bill - The Tax Cuts and Jobs Act - putting more money in the pockets of hard working Iowans across the Third District. That means this year's Tax Day (April 17) marks the last day of filing a return using an old, outdated, and out-of-touch tax code. When you file your individual taxes in 2019, you'll be using larger deductions, which means more money kept in your pocket where it belongs.

During the recent late March and early April district work period, I traveled across the Third District, and from Hamburg to Bondurant heard about the positive effects Iowans are seeing in their paychecks and in the economy already. Across the country, millions of workers have received over $4 billion in bonuses and millions more have seen raises. Job creators - large and small - are investing in Iowa and across America.

Unemployment is lower than it has been in a decade and wages are growing. As Iowans are starting to see the tax relief they deserve, consumer sentiment is the second highest it has been since 2004. Folks are discovering they are better off with the new tax relief law.

The U.S. House of Representatives' Ways and Means Committee estimates the typical middle-income family of four in the Third District will see an average tax benefit of $2,903 because of the new tax law. It also estimates the typical family of four would see a 58 percent reduction in their tax bill, and a single parent with one child would see a 73 percent reduction in their tax bill. By doubling the standard deduction, Iowans will not be taxed on the first $12,000 for individual filers and $24,000 for married filers. The additional standard deduction for filers over 65 is still in place meaning those over 65 will save even more. This is good news.

These tax savings are making a real difference for Iowans from every walk of life.

For our seniors, the expanded medical expense deduction will ensure they keep more of their money. For families, doubling the child tax credit means more money and financial freedom for themselves and their family priorities. No matter how a family decides to use their own money, they will have more of it do with as they please. And for students, the bill preserves graduate tuition waivers and the student loan interest deduction.

Iowans work hard for their money and they should be keeping more of it which is why I voted for and we passed the Tax Cuts and Jobs Act. I trust Iowans to spend their money better than the federal government and we are already seeing the economic benefits.

Wages are increasing the fastest since the end of the recession in 2009 and businesses of all sizes are growing, creating new and better jobs, and driving investment into our communities.

As Iowans continue seeing more money in their paychecks and job creators continue to invest in their communities and workforce, I am optimistic about wages continuing to rise and the economy growing and becoming healthier.

In Congress, we aren't done fixing the tax code. I'm working with my colleagues to make sure the tax relief for individuals is made permanent and we continue to find ways to bring accountability to the Internal Revenue Service and make the tax code work for Iowans.

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