U.S. Senator Pat Roberts, a senior member of the Senate Committee on Finance, today voted in favor of significant and historical tax relief for all Americans, to repeal the individual mandate in Obamacare and to boost economic growth by modernizing the tax code. The Finance Committee favorably reported the bill, the Tax Cuts and Jobs Act, with a vote of 14-12.
"After years of work, the Finance Committee has put together a good bill focused on providing tax relief to middle income Americans," Roberts said. "So many working families in Kansas need this meaningful relief. This bill, which includes many provisions supported by Democrats, will allow them to keep more of their hard-earned dollars and will help create new and better paying jobs."
Important provisions for Kansans in the bill:
Doubles the child tax credit to $2,000, raises income caps allowing more middle-class families to claim it and indexes the credit to inflation.
Lowers rates for low- and middle-income households, allowing them to keep more of their hard-earned dollars.
Creates an employer credit for paid family and medical leave, encouraging flexible work arrangements to help meet the needs of 21st century working men and women.
Protects 401(k) and Individual Retirement Accounts to help Americans build their retirement nest eggs and save for retirement.
Maintains home mortgage interest deduction up to $1 million, incentivizing homeownership and providing tax relief to current and aspiring homeowners.
The Tax Foundation estimates that under this bill, Kansans' income will increase by $2,500 and 9,019 new jobs will be created.
A typical family of four earning the median family income of around $73,000 will get a tax cut of nearly $1,500. A single parent with an income of $41,000 will see a 55 percent reduction in their tax bill.
"I am also proud of the pro-growth provisions I secured in the bill for farmers and ranchers, especially during this tough economy," Roberts said.
Some of the provisions benefitting agriculture producers include:
Robust individual and business income tax rate reductions;
Repeal of the alternative minimum tax for individuals and businesses;
More robust depreciation for farmers and ranchers;
Better cash accounting for ag producers;
Increased exemptions from the estate and gift tax;
And retains the current the rules for stepped up basis.
The bill now heads to the full Senate for a debate and vote. The House of Representatives passed its version of tax reform Thursday.
In June, Finance Committee Chairman Orin Hatch appointed Senator Roberts to lead the committee's examination of agriculture tax issues. Senator Roberts is also Chairman of the Senate Committee on Agriculture, Nutrition and Forestry.