Press Releases
Graves Statement on Passage of “Game Changing” Tax Reform Legislation
Washington, DC,
December 19, 2017
Congressman Garret Graves (R- South Louisiana) released the following statement after voting today in the US House of Representatives to pass the Conference Report to Accompany H.R. 1, the Tax Cuts and Jobs Act – a bill that reforms the nation's tax code for the first time in 31 years: "This is a game-changing rewrite of our tax system that finally puts what's best for people – not government – first. Lowering taxes across every income tax bracket, nearly doubling the standard deduction, giving people back their freedom to make healthcare decisions without having to pay a government-imposed penalty and lifting some of the tax burden on our small businesses means that Washington takes less while individuals, families and job creators keep more. That's a good thing. Finally, this tax reform bill helps to eliminate the strategic advantage that foreign companies hold over America's small businesses by providing competitive tax rates. This provides opportunities for all Americans by creating jobs here in our country not overseas and helps to increase pay for our families. And Louisiana wins: our flood and other disaster victims get the tax breaks we've fought for all year long, we preserved tax incentives uniquely critical for community development, historic preservation, economic reinvestment and higher education, and the bill includes a change that may result in a small increase in coastal restoration and hurricane protection funding for Louisiana by amending offshore energy revenue sharing law." Flood Tax Relief: Individuals affected by the 2016 flooding in Louisiana will now have much needed tax relief with the passage of this bill. The conference report contains two provisions adopted in the Senate passed version, which will remove the 10% penalty many incurred when withdrawing from their retirement plans in the wake of this disaster. The other provision provides that casualty losses are deductible without exceeding ten percent of the taxpayer's adjusted gross income. The conference report embodies the legislation first proposed by Reps. Charles Boustany and Graves in the wake of the Louisiana 2016 floods. H.R. 2849, the "Louisiana Flood and Storm Devastation Tax Relief Act of 2017" was introduced June 8, 2017, and cosponsored by Reps. Cedric Richmond, Ralph Abraham and Clay Higgins. Increased Revenue for Coastal Restoration: The march to restore our coast continues. The conference report includes a provision that expands upon the Gulf of Mexico Energy Security Act that Graves helped to write and negotiate in 2006. H.R. 1 may result in an additional $70 million to $80 million to Louisiana's restoration efforts. Combined with the law changes Graves made (HR 3462, which was included in the FAST Act) to the Coastal Wetlands Planning, Protection and Restoration Act (CWPPRA) in 2015, which adds $80 million to $100 million a year in coastal protection efforts, the delegation's efforts to ramp up coastal protection spending has expanded dramatically. Grad School Tax Credit: Currently, employees, as well as their spouse or any dependents, of higher education institutions are able to exclude tuition reductions from gross income. The conference report preserves this protection. Graves stated last month when passing the House version of H.R. 1 that he would work to fix the unintended impact of H.R. 1 on the Grad School Tax Credit. Historic Tax Credit: Louisiana's unique cultural and architectural heritage means our state has consistently been at the top of the list of states that utilize the rehabilitation credit. Graves worked with House leaders to urge protection of the credit in the Senate version of the bill, which does modify the credit but retains a 20-percent credit for qualifying rehabilitation expenditures. The preservation of this credit helps to protect many historic buildings and economic revitalization projects in our state. New Markets Tax Credit: Louisiana has also utilized the New Markets Tax Credit to bring development, job creation and economic growth to areas of our community in need. Graves vocalized support for continuing access to the credit, based on the return of investment on federal tax dollars. As a result, the House and Senate Conference Committee Report maintains intact current availability to this credit, enabling necessary investments to continue to be made in our community. Graves will continue to work with the Ways and Means Committee to help improve this program's guidelines to ensure only meritorious projects that advance the public's best interest are advanced. Graves continued: "We are operating under a 31-year old tax code. It is outdated, broken and punishes hardworking Americans. As other countries have modernized their tax codes to reflect today's economy, we continue to challenge future growth and put the future of our children and grandchildren in jeopardy. When you look at this bill collectively, we're talking about a fundamentally different environment for our country – one that allows for higher wages, lets people keep more of their hard-earned money, encourages broad economic growth, supports the kind of investments needed to own a home, have or adopt children and to build safer communities with stronger families and more opportunity for everyone." Under the bill that now awaits Senate approval before being sent to the president, a family of four with income of around $73,000 (median family income) will see a tax cut of more than $2,000. Their tax bill will fall from what they would pay next year, around $3,557.50, to paying $1,499 instead—a reduction of $2,059. This represents a reduction in their tax bill of nearly 58 percent.* A single parent with one child earning $41,000 will see a tax cut of more than $1,300. Their tax bill will fall from what they would pay next year, around $1,792.50, to paying $488 instead—a reduction of $1,304.50. This represents a reduction in their tax bill of nearly 73 percent, meaning that their tax bill next year will be about one quarter of what it would be under current law.* Married small business owners with income of $100,000 per year: a couple earning $100,000, with $60,000 from wages, $25,000 in compensation from their noncorporate business, and $15,000 of business income, will see a tax cut of more than $2,600. Their tax bill will fall from what they would pay next year, around $10,982.50, to paying around $8,379 instead—a reduction of $2,603.50. This represents a reduction in their tax bill of nearly 24 percent.* Highlights of the Tax Cuts and Jobs Act:
Takes action to support more American families by:
For job creators of all sizes, the Tax Cuts and Jobs Act:
Delivers significant tax relief to Main Street job creators by:
Preserves important elements of the existing business tax system, including:
For greater American energy security and economic growth, the Tax Cuts and Jobs Act:
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