WASHINGTON, DC – After months of bipartisan meetings and hearings on tax reform, U.S. Senator Pat Roberts (R-Kan.), a senior member of the Senate Finance Committee, today applauded the introduction of the Senate Finance Committee’s tax reform bill. The committee will begin its markup of the bill on Monday.

“Tax reform in our country is long overdue,” Roberts said. “This bill will bring our tax code into the 21^st century – providing middle-class Americans with the tax relief they need. Over fifty percent of Americans are living paycheck to paycheck, and this bill is a critical step toward creating more jobs, at higher wages, and allowing Americans to keep more money in their pockets.”

Roberts recorded an audio statement on the legislation, which can be downloaded below.

Roberts continued, “There is widespread, bipartisan agreement on the need for tax reform and the fact that our tax code is burdensome, outdated, and confusing. Tax reform will close special interest loopholes and tax breaks, and provide greater fairness for all Americans. This bill will also keep jobs here at home, by leveling the playing field with other nations whose taxes codes are more favorable to business.

“I’m proud Chairman Hatch appointed me to examine agriculture tax issues, and I believe this bill is critical to farmers and ranchers. From reform to expensing requirements to the death tax, this bill will give our producers the certainty they need to continue feeding our nation.”

The following are key provisions of the bill:

• Lowers individual tax rates for low- and middle-income Americans by effectively expanding the zero tax bracket and maintaining a 10 percent bracket, allowing hardworking taxpayers to keep more of their hard-earned money, make ends meet, and save for retirement. The bill includes a reformed rate structure that targets tax relief to the middle class while maintaining the existing tax distributions, and a 38.5 percent bracket for high-income earners.

• Nearly doubles the standard deduction to reduce or eliminate the federal income tax burden for tens of millions of American families. The standard deduction will increase from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples. For single parents, the standard deduction will increase from $9,300 to $18,000.

• Recognizes the unique challenges faced by parents with young children by:

Expanding the child tax credit from $1,000 to $1,650 and allowing many more parents to claim the credit by substantially lifting existing caps;

Preserving the child and dependent care tax credit to help working parents care for their children and older dependents – such as an aging grandparent – who need support;

Preserving the adoption tax credit to help families with the high costs of adopting children; and

Allowing parents to more effectively save for the education costs of unborn children.

• Preserves the deduction for charitable contributions, continuing a long recognition of the importance of private philanthropy for the churches and community organizations that daily provide aid and assistance to those in need.

• Protects the home mortgage interest deduction for existing mortgages and maintains the deduction for newly purchased homes up to $1 million. This incentive for homeownership provides tax relief to current and aspiring homeowners.

• Continues popular retirement savings programs such as 401(k)s and Individual Retirement Accounts, to help Americans build their retirement nest eggs and prepare for the future.

• Simplifies accounting for small businesses.

House and Senate leadership introduced a tax reform framework in September. The House and Senate then approved budget resolutions to initiate the budget reconciliation process to allow the Senate to consider tax reform with a 51-vote threshold.

With introduction of this bill, the Senate Finance Committee will now begin marking-up the tax reform language next week. The House Ways and Means Committee is expected to complete their markup this week.

In June, Finance Committee Chairman Orin Hatch appointed Senator Roberts to lead the committee’s examination of agriculture tax issues.

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