Johnny Isakson's Position Statement on Taxes

For decades, the federal tax code has served as a source of anxiety and frustration for Americans and imposed a significant compliance burden on taxpayers who spend their hard-earned dollars on tax-preparation software or tax professional services to complete their annual tax returns.

In December 2017, Congress passed and the president signed H.R.1, the Tax Cuts and Jobs Act, into law.

This new law is a once-in-a-generation overhaul of a very outdated federal tax system. It simplifies tax preparation for American families, and it allows taxpayers to keep more of their hard-earned money rather than sending it to Washington for someone else to decide how it will be spent.

The Tax Cuts and Jobs Act is an investment in the middle class, jobs, higher wages, and stronger economic growth — all of which will be good for Georgians, Americans, and their families.

Our revamped tax code includes a number of provisions to cut taxes for individuals and families, including nearly doubling the standard deduction, doubling the child tax credit, and cutting income tax rates across the board. As a result, the nonpartisan Joint Committee on Taxation found that the biggest percentage of tax cuts in 2019 will go to households with income between $20,000 and $50,000. Collectively, American workers throughout the country have received more than $4 billion in employment benefits ranging from wage increases to retirement savings boosts to new workforce training because of this new 21st century tax system that is pro-growth, pro-competitiveness, and pro-America. 

For small businesses, the new tax reform law provides tax relief, too, enabling them to expand and create jobs.

Additionally, the law aggressively modernizes the U.S. corporate tax system by creating a competitive 21 percent tax rate, and adopts new international tax rules similar to our major trading partners so American companies can once again compete on a level playing field with the rest of the world.  The incentive for U.S. companies to move their headquarters overseas, or to stash their earnings in foreign countries rather than investing them here in America, has been removed.   

As a member of the U.S. Senate Committee on Finance, which has jurisdiction over tax reform, I was proud of my active role in this overhaul. We held many bipartisan hearings on tax reform over the past seven years. In 2015, the Senate Finance Committee had five active, bipartisan tax reform working groups that issued reports with options, many of which were adopted as part of the new tax reform law.

This comprehensive update of our tax system is already showing results as the engine of growth we have long needed to support taxpayers, raise wages, and help make America the number-one destination for both domestic and foreign business investment. I will continue to work toward tax and fiscal policies that help more Americans keep their hard-earned money and succeed.

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