In the days and weeks after the president signed historic tax reform into law, more than 100 businesses around the country — including right here in North Texas — are putting more money in the pockets of their employees.
Companies such as Dallas-based AT&T, Southwest Airlines and Texas Capital Bank and Fort Worth-based American Airlines are giving bonuses to their workforces, increasing investment in their operations and donating millions of dollars to charities because of tax reform.
My goals throughout this process were to push for bold reforms that expand economic opportunities and cut taxes for the people I represent. We need policies in place that encourage businesses in our community to grow and invest in their employees. The final result reflected these goals.
The Tax Cuts and Jobs Act reforms a broken tax code, provides tax relief to every income level in its first year, and rejects the unfair, outdated status quo. A unified Republican government kept its promise and delivered a meaningful Christmas present to American families, individuals and job creators.
Modernizing our corporate tax system is vital to areas like the North Texas region. Tens of thousands of North Texans are employed by the 22 corporations on the Fortune 500 list that call the Dallas-Fort Worth area home. The Tax Cuts and Jobs Act stops punishing corporations for locating their headquarters in the U.S. vs. a country with a lower tax rate. These are reforms created to incentivize American companies’ investing and creating jobs in the U.S. instead of overseas, boosting the paychecks of American workers, and leveling the playing field for Dallas-Fort Worth companies competing in a global marketplace.
Bringing our tax code into the 21st century is a crucial step to unleashing America’s economic potential. Much-needed reforms were coupled with common-sense provisions I fought hard to protect and enhance, like the tax exemption for private activity bonds and the low-income housing tax credit. The result is a tax code that encourages businesses throughout Texas to continue investing in community development, local infrastructure projects and expansion plans here at home.
Main Street entrepreneurs living out the American dream finally have a tax code that works with them — not against them. The men and women relying on their storefronts to support their families will save time and money and keep more of their hard-earned profits so they can grow their business, hire more people, and leave a legacy.
This is pro-family, pro-growth legislation that works with people as they progress through life. From students in graduate school and first-time homebuyers, to mature families and those saving for college and retirement, the Tax Cuts and Jobs Act prioritizes common situations facing American families.
We closed the lobbyist-created loopholes benefiting a select few and nearly doubled the standard deduction for every taxpayer. For instance, newlyweds in North Texas will pay zero taxes on their first $24,000. With an expanded child tax credit, from $1,000 to $2,000, that couple now keeps more of their paycheck to help them raise their children. Strengthening the child and dependent care tax credit and expanding the medical expense deduction add to the family-focused benefits.
As a former homebuilder in North Texas, I know that homeownership is a critical part of the American dream. The mortgage interest deduction for existing mortgages is unchanged. For future homeowners, the mortgage interest deduction is available up to $750,000 — more than three times the average home value in North Texas.
We know how important the property tax deduction is to a family’s tax liability in Texas. This deduction was removed entirely in early drafts, but I continued to work to preserve the full deduction. Moving forward, state and local taxes are now deductible up to $10,000.
From the beginning of this process, my goals were to provide long-overdue relief for hardworking taxpayers and increase competitiveness for American companies to jump-start a stagnant economy. The Tax Cuts and Jobs Act accomplishes these goals.