Congressman Andy Barr (KY-06) released the following statement after House passage of a package of bills referred to as Tax Reform 2.0. Together, H.R. 6760, the Protecting Family and Small Business Tax Cuts Act; H.R. 6757, the Family Savings Act; and H.R. 6756, the American Innovation Act, will protect middle-class and small business tax cuts, promote family savings, and advance the next generation of American entrepreneurs.
“Our economy is finally booming and it’s a direct result of the Tax Cuts and Jobs Act,” said Congressman Barr. “More than six million jobs have been created, unemployment is at historic lows, middle-class income just reached an all-time high, and business optimism is at its highest level in 18 years.”
“Today, House Republicans took another step forward to provide certainty for families and small businesses. It’s very sad and telling that an overwhelming majority of Democrats voted against this proposal today – a proposal they have supported since the beginning stages of the tax reform debate. By making the individuals and family tax cuts permanent, increasing flexibility for retirement savings accounts, and improving the ability for entrepreneurs to access start-up funds, we are ensuring the American people have the opportunity to benefit from this booming economy.”
Due to Senate Democrats’ obstruction last December, the original Tax Cuts and Jobs Act only maintained the individual and small business tax rates for eight years. For these reasons, Congressman Barr supported Tax Reform 2.0 to deliver additional relief to American families and small businesses.
The Protecting Family and Small Business Tax Cuts Act makes permanent the individual and small business tax credits, locks in the doubled child tax credit, and makes the 20 percent deduction for pass-through business income permanent.
The Family Savings Act enhances provisions to help local businesses provide retirement plans to their workers by allowing small businesses to join together to create more affordable 401(k) plans and allows families to start saving earlier by creating new Universal Savings Accounts, expanding 529 Education accounts, and allowing new baby savings.
The American Innovation Act allows new businesses to write off more of their initial start-up costs and allows them to bring in new investment without triggering limits on their access to tax benefits, such as research and development credit.
The non-partisan Tax Foundation analysis found Tax Reform 2.0 will create an additional 1.5 million jobs, increase wages by 0.9 percent and increase the GDP by 2.2 percent.