Dear Ms. Grutz,
Thank you for taking the time to contact me about tax reform. It is important for me to hear from folks in Iowa on policy matters such as this.
On December 22, President Trump signed into law H.R. 1, the Tax Cuts and Jobs Act, the first comprehensive tax reform in over 30 years. The law will provide significant tax relief for low- and middle-income families by doubling the standard deduction and child tax credit and lowering rates across the board. For a family of four earning the median income of $73,000, it will reduce taxes by $2,058. A single parent with one child who earns $41,000 would see a $1,300 tax cut.
It also makes significant changes to the taxation of businesses in order to make the United States more competitive with other developed countries and stimulate wage growth for middle-class workers. It would lower business tax rates for job creators of all sizes, impose a one-time tax on assets that businesses hold overseas, and establish anti-abuse taxes designed to prevent tax evasion.
H.R. 1 also repeals the Affordable Care Act's (ACA) costly individual mandate as well. Not only did the individual mandate previously force Americans to fill out additional paperwork when filing taxes, but also forced them to purchase health insurance that in many cases was unaffordable. If health insurance was not purchased, individuals were fined by the Internal Revenue Service (IRS). For 2015, the IRS reported that approximately 6.6 million Americans chose to take the penalty and collectively paid about $3.1 billion in fines. Of these individuals, over 75% earned less than the 2015 median household income of $56,516.
Health insurance that is too expensive to purchase or use is not health insurance. I was proud to join my colleagues in pursuing public policy that puts more of folks' hard-earned, taxpayer dollars back into their pockets.
On December 22, President Trump signed into law H.R. 1, the Tax Cuts and Jobs Act, the first comprehensive tax reform in over 30 years. The law will provide significant tax relief for low- and middle-income families by doubling the standard deduction and child tax credit and lowering rates across the board. For a family of four earning the median income of $73,000, it will reduce taxes by $2,058. A single parent with one child who earns $41,000 would see a $1,300 tax cut.
It also makes significant changes to the taxation of businesses in order to make the United States more competitive with other developed countries and stimulate wage growth for middle-class workers. It would lower business tax rates for job creators of all sizes, impose a one-time tax on assets that businesses hold overseas, and establish anti-abuse taxes designed to prevent tax evasion.
H.R. 1 also repeals the Affordable Care Act's (ACA) costly individual mandate as well. Not only did the individual mandate previously force Americans to fill out additional paperwork when filing taxes, but also forced them to purchase health insurance that in many cases was unaffordable. If health insurance was not purchased, individuals were fined by the Internal Revenue Service (IRS). For 2015, the IRS reported that approximately 6.6 million Americans chose to take the penalty and collectively paid about $3.1 billion in fines. Of these individuals, over 75% earned less than the 2015 median household income of $56,516.
Health insurance that is too expensive to purchase or use is not health insurance. I was proud to join my colleagues in pursuing public policy that puts more of folks' hard-earned, taxpayer dollars back into their pockets.
Please know that I appreciate your feedback on this issue. Feel free to contact my office with any further information, as I always enjoy hearing from Iowans.
Sincerely,
Joni K. Ernst
United States Senator
Joni K. Ernst
United States Senator
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