Tax Facts Tuesday: Families Win with GOP Tax Cuts

June 12, 2018 — Blog   

Here’s the news: When Republicans reformed our nation’s tax code last December, the new law strengthened and created multiple provisions specifically designed to help families get ahead.

Here’s the rhetoric: Democrats continue to deny the benefits of these pro-growth, pro-family reforms, despite clear economic indicators showing that tax reform is having a positive impact for our families and workers – including increased wage growth, record low unemployment, and decades-high consumer confidence.

Here’s the reality: The Republican-led tax cuts are helping families achieve their own American Dream. The strong initial results speak for themselves. Here are specific policies included in the law that will continue to bolster the financial wellbeing of America’s families:

Greater Support for Raising Children and Taking Care of Loved Ones

  • Doubled child tax credit: The law doubles the child tax credit to $2,000 for each child and expands it to more families across the country.
  • Preserved Child and Dependent Care Tax Credit and Adoption Tax Credit: Every family is different, and we worked to ensure our tax code continues to help families of all walks of life by preserving these important tax credits.

First Ever Paid Family Leave Tax Credit

Under the new law, job creators may claim a new tax credit for implementing a paid family leave or medical leave program for their workers. This credit will help companies that offer this important benefit to parents as they raise their families.

In addition to this new credit, many families are benefitting as companies expand family benefits for their workers with their savings from a lower corporate tax rate. For example:

  • Walmart – America’s largest private employer – announced a generous allowance for adoption expenses and 10 weeks of paid family leave for their workers.
  • Chipotle Mexican Grill also announced increased benefits for their workers, including additional paid family leave for all employees.

Assistance with Saving for the Future

The GOP tax cuts help families save for their own and their children’s future.

  • For Children: The law expands the 529 account tool for education savings to include elementary and secondary school, making it easier to afford rising school costs while providing greater flexibility and eliminating the need to save separately for different levels of education.
  • For Parents: The law retained popular retirement savings options such as 401(k)s and Individual Retirement Accounts to help families continue saving for the future.

Businesses are also expanding savings options and tuition assistance for their workers thanks to tax reform. For example:

  • McDonald’s – the world’s biggest restaurant chain – created a new tuition assistance program available to all employees.
  • FedEx made a $1.5 billion contribution into their pension plan, helping their workers save more for retirement.

Fairer Taxes, Bigger Paychecks

In addition to all the great features of the law listed above, tax reform also was about putting more money back into your pocket to spend as you and your family—not how Washington bureaucrats—see best.

The law does so by doubling the standard deduction and lowering tax rates across the board. Every day, companies are announcing increased salaries and expanded benefits. Utility companies in 48 states are decreasing rates for consumers. All of these things help families get ahead financially to better plan for the future or simply manage day-to-day expenses.

The bottom line: Tax reform was designed for our families, tax reform is helping our families, and Republicans are committed to continuing our work to make the tax code even more family friendly.