Barrett: Working Families Tax Cuts Putting Money Back in Americans' Pockets
In case you missed it, Congressman Tom Barrett (MI-07) wrote an op-ed in The Detroit News today highlighting the increased tax savings Michigan families are receiving as a result of the Working Families Tax Cuts that Barrett helped pass last year. Ahead of President Trump’s State of the Union address, Barrett celebrates several of the most important tax relief provisions including the increased Child Tax Credit, no tax on tips or overtime, and the permanent double standard deduction.
You can read the op-ed here or below.
Tax season is underway. It’s a time that puts pressure on Michigan families, as they compile documents, fill out IRS forms and find out how much they owe or how big their refund will be.
This year, there’s a little less stress thanks to the Working Families Tax Cuts — the law my Republican colleagues and I passed, and President Donald Trump signed, to provide real relief and make life more affordable. These tax cuts are already lowering costs for families, delivering for the American worker and strengthening our local economy in Michigan.
So far this year, the IRS has received more than 33 million returns and workers are getting more of their hard-earned money back. The average refund is $2,476. That’s a 14% increase — more than $300 higher than a year ago.
This relief is filling the wallets of taxpayers from all walks of life, especially working-class and middle-class families.
One reform I’m most proud of is the Child Tax Credit, which we permanently increased to $2,200. This credit has been a blessing for Michigan parents working hard to pay for food, clothes and school supplies, and the increase will make life a little easier as they raise their kids in our communities.
You probably already know that the Working Families Tax Cuts removed income tax on tips and overtime. For servers waiting tables at Michigan restaurants, stylists cutting hair, and rideshare drivers, no tax on tips rewards their hard work while boosting the growing service sector of our economy. Folks assembling Michigan-made cars or fixing our roads often put in extra time, and now they also get to keep a larger share of their hard-earned paycheck when they clock in past 40 hours.
No tax on overtime isn’t the only relief helping Michigan manufacturing workers. The Working Families Tax Cuts allow taxpayers to deduct interest payments on new vehicles built in America. This lowers costs and strengthens our auto industry, and it includes vehicles purchased last year, so buyers are starting to see these savings on their tax returns this spring.
Tax cuts for working families also include the seniors who worked decades for their retirement. This means 88% of seniors won’t owe a cent in income taxes on the Social Security benefits they earned.
All these new tax cuts are why families are getting higher refunds this year, but the biggest relief is that the Working Families Tax Cuts blocked the largest tax hike in American history. The 2017 tax cuts, which lowered costs for workers and small businesses, were set to expire. We made these lower tax rates permanent while locking in the double standard deduction. Combining the standard deduction with our increased child tax credit, a family of four’s first $35,900 is completely tax free.
Tuesday night is President Trump’s annual State of the Union address, and bigger tax refunds send a powerful message. Workers in Michigan get to keep more of their money to provide for their families and invest in our communities. The state of our union is growing stronger because the Working Families Tax Cuts empower people to succeed.