PHILADELPHIA–November 21, 2017— Last Thursday, House Republicans passed a bill to cut taxes on businesses and individuals –a big step in the GOP’s effort to overhaul the American tax system.
The Tax Cuts & Jobs Act overhauls the US tax code for the first time in 30 years, allowing a typical, middle-income, family of 4, earning $59,000, to receive a cut of $1182. Additionally, it lowers the corporate tax rate to 20%, encouraging American companies to bring their operations back to the U.S, creating jobs. It represents the largest corporate tax rate reduction in the nation’s history.
“People have been asking how The Tax Cuts & Jobs Act specifically relates to Philadelphians. The second largest group of Philadelphia’s households falls somewhere around the middle-income of $59,000 per year. Thirty percent of the city’s households, are making somewhere between $35,000 and $74,999 per year. On these terms, there are potentially a good number of Philadelphians who could be looking forward to a much-needed tax break. Although unemployment rates in Philadelphia have decreased from 2016 to 2017, Philadelphia County still has the second highest unemployment rate of the 11 counties that make up the metropolitan region, resting right now at 6%. This is also still much higher than the current national unemployment rate, which is at 4.1%. In this regard, Philadelphia could also benefit from the prospect of companies returning their operations to the US and bid opportunities for the city to host their operations,” said Michael Meehan, Chairman of the Republican Party of Philadelphia.
He added, “The plan also eliminates special-interest deductions that only benefit those in high-tax states like NY and California, and negatively impact people in states like PA, with smaller state governments and lower state and property taxes.”
The Tax Cuts & Jobs Act, still maintains the top 39.6% tax rate on high-income earners and it increases the standard deduction, allowing up to $24,000 of a household’s take-home pay to be withheld from taxation each year. Senate Republicans will begin debating the bill on the floor as they return from Thanksgiving break.