As folks across Bucks and Montgomery counties opened their paychecks in February, most received a welcome and well-deserved bump in their take-home pay.
The new tax law takes landmark action to deliver more jobs, fairer taxes, and bigger paychecks to hardworking families from Tullytown to Telford by reducing tax rates at all income levels, increasing the Child Tax Credit from $1,000 to $2,000 per child for almost 46,000 filers in our district, and nearly doubling the standard deduction from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples. All in all, the typical middle-class family of four here in our community will see a $3,566 tax cut this year thanks to Tax Reform.
More than just allowing Americans to keep more of their hard-earned money, tax reform maintains important parts of previous policy for middle class families like deductions for student loan interest, mortgage interest and state and local taxes. Additionally, the measure expands deductions for charitable contributions and expands the deduction for medical expenses.
It’s not just workers who are seeing the benefits following this historic action. As the Pennsylvania Chamber of Business and Commerce noted; “The economic benefits of federal tax reform are already being realized with hundreds of businesses announcing their intent to reinvest in their facilities and workers due to anticipated savings from the new law.”
The National Federation of Independent Business released a survey that noted small business optimism at its highest level in 45 years; for many, that confidence translates into new investments into operations and workforce training. When I sat down with local small businesses last week for a tax roundtable, many echoed those feelings.
It’s easy to see why local businesses would be bullish. The new tax law removes barriers to success for the more than 50,000 job-creators throughout our district. Aside from cutting tax rates for businesses of all sizes, the law allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers, while preserving the Research & Development Tax Credit that encourages our businesses and workers to develop cutting-edge “Made in America” products and services.
These moves mean unleashing growth of jobs, productivity, and paychecks locally, but also helping our country compete in an increasingly global economy. Included are pathways that make it easier for American businesses to bring home foreign earnings to invest here, as well as measures to prevent American jobs, headquarters, and research from moving overseas.
Whether it’s the millions of American workers who have seen bonuses or raises, or the increased investment in our economy, or even the money local families will see, it’s clear that tax reform is delivering significant benefits to our community and country.
While this measure was an important piece of the puzzle toward rebuilding our economy, we can’t stop there. I’m committed to working with leaders of both parties to put politics aside and do what we were sent to Washington, D.C. to do: get results. That means passing meaningful infrastructure investment, and workforce training opportunities so we’re preparing for the jobs of tomorrow, and cleaning up the mess in Congress caused by career politicians and elite insiders. Washington must work for us, not against us.
We’ve taken a step, but now we must seize this moment. The future of our economy and our country depends on it.