Tax-cut bill: a moral document that will benefit working families in Washington
FOR IMMEDIATE RELEASE CONTACT:
December 20, 2017 David Boze (206) 946-1018
SEATTLE – Congress has passed the largest tax system overhaul in a generation and sent it to the president’s desk. President Trump supports the legislation and is expected to sign it in the coming days.
While most of the news coverage about the sweeping tax-cut bill has focused on its reductions in business taxes, additional provisions of the bill reflect long-standing Washington Policy Center recommendations that provide major benefits for working families. “Beyond fiscal policy, this bill is a moral document,” said Paul Guppy, WPC’s Vice President for Research, “It reduces the power government officials hold over our daily lives by repealing the Obamacare mandate and by letting working families keep more of the money they earn.”
Direct benefits for families in Washington state include:
- 7,606 new jobs;
- An average after-tax income gain of $773 for middle-class families;
- Doubles the standard deduction, from about $12,000 to $24,000, increasing the amount families can earn each year without paying any income tax;
- Increases the child tax credit from $1,000 to $2,000, meaning families with children can keep up to $2,000 per child more of wages without paying any income tax;
- A new $500 tax credit for each dependent who does not receive the child tax credit, meaning families can keep more of their wages without paying tax;
- Allows families to use 529 accounts to save money for tuition at private elementary and high schools, or to pay for tutoring, textbooks, and educational supplies so every child learns;
- Repeals the Obamacare individual health insurance mandate, saving families hundreds or thousands a year in federal health care penalties.
“This bill cuts taxes on job-creation and family incomes, and we are excited about the coming growth in jobs and wages in our state as the bill is implemented,” said Dann Mead Smith, president of Washington Policy Center. “As public policy, the tax-cut bill is good for investment, economic growth, jobs and for working families across our state.
“We’re already seeing the benefits, like the new employee bonuses just announced by AT&T. The tax-cut bill reduces the financial burden public officials impose on us, so Washingtonians at all levels can enjoy higher wages.”
Washington Policy Center
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