Fortunately, this Tax Day marked the last time Americans would file their taxes under the old tax code. Thanks to passage of the Tax Cuts and Jobs Act, Americans will now have a simpler and fairer tax code. I was proud to work with President Trump to reform our tax code and make the process easier for taxpayers.
Starting next year, the Tax Cuts and Jobs Act will bring Americans relief when filing their taxes under a more streamlined, straightforward tax code. However, making the overall filing process simpler and more convenient was just one of the many ways we worked to create a tax code that benefits and works for the American people.
One of the most important reforms under the new tax code is the doubling of the standard deduction. This provision increases the standard deduction to $12,000 for individuals and $24,000 for married couples. Combined with new lower tax rates, almost every Alabamian should see a tax decrease.
Also important, the new tax code prioritizes American families by doubling the Child Tax Credit from $1,000 to $2,000 per child. It is no secret that raising a family is not cheap; so, this increase provides additional support for families struggling to pay for childcare and other necessary expenses associated with parenting.
To provide even more support for families, the bill preserves the Child and Dependent Care Tax Credit, as well as the Adoption Tax Credit. Even more, the bill makes improvements to saving options for education by allowing parents to use 529 accounts to save for elementary, secondary, and higher education.
Most people will not have to wait until the next tax season to see the impact of the Tax Cuts and Jobs Act. Already, many hardworking Alabamians are seeing more money in their paychecks each month. That means your hard-earned money is ending up back in your pockets, rather than the coffers of the federal government.
Tax reform has also helped spur overall economic growth. Our bill helps to level the playing field for American businesses, creating new job opportunities and finally causing wages to rise after years of stagnation.
Many businesses have also handed out bonuses and improved benefits to their workforce. Since passage of the Tax Cuts and Jobs Act, I have had the pleasure of personally handing out bonus checks at multiple businesses in Southwest Alabama. Trust me, these workers were thrilled with the extra money.
We aren’t stopping now either. The House passed a package of bills last week to help cut down on identity theft and to hold criminals accountable for IRS scams. It is important that these crooks be punished for trying to defraud hardworking Americans, including our nation’s senior citizens.
Equally important, the House also passed bills to make the IRS more efficient, effective, and accountable. The IRS should be a customer-friendly organization that responds to the questions and concerns of the American people.
In the past four months, we have seen tremendous growth right here in Southwest Alabama because of the Tax Cuts & Jobs Act. From our small business owners handing out bonus checks to our single-income families taking home extra money in their paychecks, evidence shows that allowing Americans to keep more of their hard-earned money is a huge boom for our economy.
As we bid farewell to an old, outdated tax code, Americans can rest easy knowing they have a simpler, fairer tax code to work with in the future.
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Bradley Byrne is a member of U.S. Congress representing Alabama’s 1st Congressional District.