Tax Relief for the Middle Class and Main Street

November 17, 2017

Tax Relief for the Middle Class and Main Street

By Congressman John Moolenaar

Historic tax relief for Americans is one step closer to happening. The House passed tax relief on November 16 and this important legislation will deliver more than $1,000 in reduced taxes for middle-income families if it becomes law.

I have heard from thousands of constituents about what tax reform would mean to them and the overwhelming majority of them believe the federal tax system is too complicated. They believe it is time for the first major overhaul of federal taxes since 1986. With all the changes that have happened in everyday life since then, don’t you agree it is time to bring the tax code into the 21st century?

Here is what the tax reform passed by the House will mean for residents in mid and northern Michigan.

One, it means a tax cut for hardworking families. As I mentioned, this is a big tax cut for the middle class. A family of four with an income of $59,000 would see its annual tax bill decrease by more than $1,000.

The legislation will double the standard deduction for individuals and married couples to $12,000 and $24,000 respectively. That means the first $24,000 a couple earns will be taxed at zero percent.

Tax reform also increases the Child Tax Credit from $1,000 to $1,600. This will let parents keep more of their money to provide for their kids. Michigan families have seen their costs go up for everyday items and this extra $600 dollars per child will go a long way for every family. More than 43,000 families in my district use the child tax credit and I know they overwhelmingly support increasing it.

Two, tax reform means lower taxes for small business, and that means more jobs and bigger paychecks for Michigan residents.

The owner of a business in Clinton County told me “lower taxes would free up capital to expand our business and hire more people.”

Another business owner in Midland said, “lowering taxes will put more money in the pockets of my employees.”

Under the legislation, a Main Street business with $62,000 in income would see its tax bill fall from over $8,600 dollars to less than $5,700. This is a significant savings for our local businesses.

And that is what tax reform is all about, more money staying here, benefiting our residents and our communities.

Three, tax reform means taxes will be simpler and fairer.

Hundreds of constituents have written to me and complained about the time and expense of doing their taxes every year.

As one Lake City resident told me, “I think the tax code is way too complicated for individuals and businesses. Simplifying would make things much better.”

Another constituent, a farmer from Sanford, put it, “less time spent on doing taxes means more time actually doing business.”

I could not agree more and that is why I voted for tax reform.

Tax reform is tax relief for middle class families and Main Street, bigger paychecks, more jobs and a simpler, fairer system. This is the first major tax reform since 1986 and I will continue to fight for tax relief for hardworking Michigan families.

Congressman John Moolenaar represents Michigan’s Fourth Congressional District which is made up of Clare, Clinton, Gladwin, Gratiot, Isabella, Mecosta, Midland, Missaukee, Ogemaw, Osceola, Roscommon, Shiawassee, and Wexford counties, and parts of Montcalm and Saginaw counties.