“When we began our push for tax cuts, I promised that our bill would result in more jobs, higher wages, and tremendous relief for middle-class families, and that is exactly what we have delivered.”
President Donald J. Trump
Five big changes stand out: 1) Lower tax rates for Americans across the board; 2) a nearly doubled standard deduction; 3) a doubled child tax credit to help families, along with better saving options for education; 4) a simpler process to make filing taxes less of a headache; and 5) relief from the Affordable Care Act’s ineffective mandate.
A NEW SYSTEM FOR HARDWORKING TAXPAYERS: Hardworking taxpayers will see more money in their paychecks as a result of the Tax Cuts and Jobs Act signed into law by President Donald J. Trump.
- Today is the last “Tax Day” under the old system.
- Next Tax Day in 2019, taxpayers will clearly see the results of the Tax Cuts and Jobs Act, as Washington will be taking less of their hard-earned wages.
- Approximately two-thirds, 65 percent, of all households will see lower marginal income tax rates in 2018, according to a recent analysis by the Tax Policy Center.
- Taxes are expected to decline across all income groups.
- 82 percent of middle-income taxpayers are expected to receive an income tax cut.
- A typical family of four earning $75,000 a year and with two children will see a tax cut of more than $2,000 in 2018.
- Americans deserve a tax code that enables them to file their taxes without an army of lawyers and accountants and the Tax Cuts and Jobs Act will help do just that.
- Under the Tax Cuts and Jobs Act, a large majority of American families will have their taxes simplified because of the increased standard deduction.
- Dozens of special interest tax breaks and loopholes have been eliminated, which will raise $4 trillion in revenue to help offset tax cuts for American workers and families.
TAX CUTS AND REFORMS THAT WORK FOR AMERICAN FAMILIES: Less money taken out of workers’ paychecks will mean more money freed up to provide for their families and invest in their future.
- Americans deserve a tax system that has their backs and the Tax Cuts and Jobs Act does just that by taking less out of workers’ paychecks and supporting their efforts to provide a better future for their families.
- As a result of the tax cuts and reforms signed into law by President Trump, American families can look forward to:
- Lower individual tax rates.
- A nearly doubled standard deduction, from $6,500 to $12,000 for individuals and from $13,000 to $24,000 for married couples.
- A doubled Child Tax Credit, increased from $1,000 to $2,000 per child.
- A new $500 tax credit for dependents age 17 or older.
- An expanded medical expense deduction.
- No more individual mandate penalty tax.
- Expanded use of 529 education savings accounts, which can now be used to help pay for elementary and secondary education in addition to college.
TAXPAYERS TELL THEIR STORIES: President Trump has heard directly from hardworking taxpayers about how the Tax Cuts and Jobs Act is improving their lives.
- Since signing these historic tax cuts and reforms into law, the President has held a series of meetings and events with workers, business owners, and families to hear their stories.
- In West Virginia, President Trump heard from Tony Hodge, a rural mail carrier with two young children, who said that his “family has been able to save, this year, $2,417” because of the Tax Cuts and Jobs Act.
- Jessica Hodge, Tony’s wife, told the President that “this is a big deal for our family.”
- Sean Farrell, an engineer at Service Pump and Supply in West Virginia with two children in private school, spoke with President Trump about how the expansion of 529 savings account is helping his family.
- Farrell told the President: “Last month, we opened for the first time a 529 account. Previously, these accounts could only be used to spend on college education. With the changes to the tax law, we can now spend it with St. Joe, for our kids’ K-12 education.”
- During an event in Ohio, Deana Spoleti, who works in customer service at Sheffer Corporation, told the President “we’ll have money in the bank, more money to make ends meet” due to tax cuts.
- In an Oval Office meeting, John Anfinson, an Iowa small business owner, said that his granddaughter and her husband are “going to have about $6,000 additional money they got to keep.”
Shared from Whitehouse.gov
RELATED: President Donald J. Trump’s Economic Mobility Reforms Will Restore Independence and Dignity to Millions of Americans
Keep pushing ! Millions of us behind you Mr. President !! Thank you ??
I have a small tax business; and, I found that about 75% of my clients will get relief under the new tax law. The others will either not get major increases or I was unable to apply the business tax rule regarding small businesses getting the 20% break – will have to wait to see what their net business income is before we will see results.
thank you for keeping the taxes down
And no more deductions for mileage driven on behalf of a company. I drive 20,000 miles a year with wear and tear on my vehicle is a mental health provider and I can no longer deduct it this sucks.
It didn’t help me this year but am looking forward to next year when the double deduction takes place. I was hurt so badly by the WEP they passed during Regan administration because I only taught for 17 years and got only $1100 pension. When my husband died in 2011 and I do not get spousal benefits and they took 2/3 of the small Social Security of my own I ended up with $62 a month until this year. Now with the increase in SS I not only lost my $62 but have to pay into SS for part B and D each month. I was forced to take a reverse mortgage to survive but I didn’t get but $80,000 and I have now lived on that for 7 years and trying to keep the house up and pay taxes here in CA plus all kinds of insurances is very difficult. WEP Should not have applied to people who did not have a pension one could live on. I should not be struggling like this. My husband worked until 70 thinking I would get more. He didn’t believe WEP.
Your post leaves out some information. How many years did you pay into Social Security, and is the $62 per month based on your own record? Did your spouse have a Social Security benefit when he died? If your $1100 is from a State that didn’t collect FICA taxes from you while you were teaching, then you are still entitled to your deceased spouse’s benefit less about $740 for the GPO (Government Pension Offset). If I understand correctly, you should re-apply for widow’s benefits based on your spouse’s record.
Apparently simplification was not a goal. Nor giving an equal break to skilled workers who own their own business. I am referring to the new Section 199 that is supposed to equalize the rates on C-Corporations and partnerships, S-Corporations & the self-employed. In essence, if you are in a skilled profession (doctor, accountant, consultant, attorney, etc – except for architects who must have a great lobbyist) and have ownership in your organization you are disallowed from having a reduced rate to match the butcher, the baker and the candlestick maker.
Also, trying to work the formula is enough to cause brain bleed, a very sneaky result that you can not blame on the Russians!
HOW ABOUT NEW YORK STATE.HIGH TAX IN THIS STATE.KILLING PEOPLE HERE.NO END.
that’s you DeBlasio for ya……
Excellent! Now if we could just keep Congress “budget writers” from finding so many ways to spend excessively, things would be a lot better.
Social Security recipients don’t pay any taxes anyway so we never felt anything. The raise in 2018 was 2% and after Medicare got their cut I had $13.00 more in my check. PRAY TELL ME. , when do older people get a tax cut. We are actually hurting without this help.
Appreciate our President and all he has done to make America Great again, however the new tax cuts have not helped my family much. In fact, my taxes are going up considerably because certain deductions are not in the new tax plan. Oh well, I am still hopeful.
Bragging about the tax cuts is one thing but the truth seems to be tax cuts cause higher prices. Gas in SE Georgia jumped .20 cents overnight recently. Our government cannot control all the spending and so when something good happens Whiskey, Cigarettes, and gas always gets pries hacked to cover the loss of money. Our government wants more and more money.
I won’t know how the tax cut will affect me until next year but I believe the increase in the standard deduction will help since I am unable to itemize. Thank you President Trump for trying to do what you promised during your campaign.