CONROE — With the passage of the Tax Cuts and Jobs Act in the House, U.S. Rep. Kevin Brady, R-Conroe, feels the government is on the path to something incredibly historic, despite stringent opposition from liberals and even some of his own party.
On Thursday, the House voted 227-205 to pass the act, which is designed to deliver tax relief to families in every Congressional district across the country, according to Brady.
Provisions within the bill could grant a typical middle-income family of four earning $59,000 (the median household income) a $1,182 tax cut. The bill also is expected to create nearly 1 million new jobs, increase annual after-tax income for middle-income households by an average of $2,598, and grow the economy by more than 3.5 percent.
“We are making history for the American people,” Brady said. “The House Ways & Means Committee delivered bold, transformational tax reform for the first time in 31 years. This will lead to more jobs, fairer taxes and bigger paychecks.”
However, critics of the bill called it the worst piece of legislation seen in the House in decades, claiming it only is a tax cut for the rich and damaging to families and students, among others.
However, Brady said he thinks it’s unfortunate that the Democratic representatives would defend the status quo.
“We have the worst tax code … on the planet,” he said. “It’s costly, unfair and loaded with special interest provisions and lobbyist loopholes that favor some over hard-working Americans. They’re defending those breaks; we’re changing them in a big way.”
Brady said he hopes there still are some “JFK Democrats” prepared to see the benefits of tax cuts and job growth.
“JFK … also proposed tax cuts because he believed it would grow the economy and grow paychecks nationwide, and he was proven right,” Brady said. “Without change, our companies and jobs will continue to flee America.”
For Texas, Brady said the House bill is estimated create 74,000 new jobs and increase paychecks on average about $2,500 dollars.
“This is not just about a fairer, simpler tax code, which we desperately need; this is about making America leap-frog from nearly dead last behind our global competitors to the lead the pack,” he said. “You will see more jobs created on Main Street in Texas; you’re going to see jobs come home from overseas; you’re going to see bigger paychecks; you’re going to have an easier time filing your taxes; and you’re going to have more of your hard-earned paychecks to use.”
Fixed-income people supplementing income with small business ventures will see help from the new standard deduction of $24,000 for a family and lower tax rates for individuals, Brady said; additionally, the bill adds a provision for small businesses that creates a 9 percent rate for the first $75,000 in earnings.
Tax rates on industry will be lowered as well, which will make them more competitive, leading to more jobs.
“The rate on corporations drops from 35 to 20 percent,” he said.
Brady said passing the House bill was a crucial step, but not the last one, as the Senate will take up its bill after Thanksgiving.
“Once that passes, it will go to conference committee where we will iron out the differences and return it to both the House and Senate to pass,” he said. “I’m looking forward to making this tax bill better at every step of the way; our tax team continues to make improvements on the bill as we listen to the American people about what they want to see in a 21st century pro-family, pro-growth tax code.”
Brady anticipates delivering tax reform to President Donald Trump’s desk by the end of the year.