House Approves Tax Cuts and Jobs Act

Dec 19, 2017
Press Release

(Washington, DC) – Congressman Doug LaMalfa (R-Richvale) issued the following statement after the House passed H.R. 1, the Tax Cuts and Jobs Act. The Senate will now vote on final passage of the bill.

LaMalfa said: “Under the Tax Cuts and Jobs Act, the vast majority of 1st District residents will save money on their taxes. That is a fact. We’re giving a booster shot to the U.S. economy, which will enable businesses large and small to hire more workers and pay their employees more. This legislation will help put more Americans back to work and bring about the return of ‘Made in America.’ It provides the tax relief that hard-working middle income families in my district deserve, and that’s why I support it.”

Due to pressure from Congressman LaMalfa and many of his colleagues, $81 billion in disaster aid for wildfires and hurricanes will be included in the spending resolution set to be voted on later in the week, as well as a 5 year extension of the Children’s Health Insurance Program (CHIP).  

Tax Cuts in final version of H.R. 1, the Tax Cuts and Jobs Act:
  • Increases the Standard Deduction from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples.
    • Nearly 72% of CA01 taxpayers, including 79% of those making under $100,000 annually and 90% of CA01 those making under $50,000 annually, use the standard deduction and will receive a tax cut without changing the way they file.
  • Cuts marginal tax rates at every income level.
    • In CA01, where the median income is below $50,000 annually, most taxpayers would see rates decrease by 3%.
  • Preserves Home Mortgage Interest deduction up to $750,000.
  • Expands the medical expense deduction by lowering the threshold to 7.5% of income for two year, helping seniors and others with high medical costs.  
  • Child Tax Credit increased from $1,000 to $2,000.
    • Over 45,000 North State families will save over $45 million annually thanks to expansion of the child tax credit.
    • $1,400 of the Child Tax Credit is available to families even if they pay no federal income tax.
  • Corporate Tax rate lowered to 21%.
  • Small Business Tax Rate capped at 20%, down from 29.6%.
    • Over 24,000 small businesses and family farms in CA01 will see their taxes capped under this provision.
  • Repeals the Affordable Care Act Individual Health Insurance Mandate.
    • Over 15,000 CA01 residents will save an average of $470 thanks to the repeal of ACA fines on those who choose not to purchase insurance.  
  • Boosts exemption for the Alternative Minimum Tax (AMT) from $78,750 to $500,000.
Protects Important Deductions and Credits
  • Protects 6,620 North State teachers by preserving the $250 teacher expense tax deduction.
  • Helps to encourage homeownership by protecting the mortgage interest deduction used by 71,000 North State residents.
  • Preserves the student loan interest deduction, protecting an average deduction of $956 for over 18,000 CA01 residents.
  • Retains the ability state and local taxes for the 21% of North State taxpayers who use the deduction.
  • Maintains the property tax deduction for over 84,000 North State households.
  • Keeps graduate school fee waivers and scholarships tax free.

Congressman Doug LaMalfa is a lifelong farmer representing California’s First Congressional District, including Butte, Glenn, Lassen, Modoc, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou and Tehama Counties.