2017: Fitzpatrick Voted For The Final Version Of Trump's Tax Reform
Plan, Which Substantially Cut Taxes For Rich Americans And Corporations,
Including Capping The Mortgage Interest Deduction. In December 2017,
Fitzpatrick voted for the Tax Cut and Jobs Act, also known as Trump's
tax reform bill. According to Congressional Quarterly, "This Conference
Summary deals with the conference report on HR 1, Tax Cuts and Jobs Act,
which the House will consider Tuesday. The agreement significantly cuts
corporate and individual taxes and seeks to simply the tax code,
although most individual tax provisions would expire after 2025. It
reduces the corporate tax from 35% to 21% and reduces taxation of
so-called 'pass-through' businesses where profits are taxed at the
individual rate. For corporate taxes it also establishes a 'territorial'
tax system that exempts most overseas income from U.S. taxation. Most
individual tax rate rates would be reduced, including by dropping the
top rate from 39.6% to 37%, and it eliminates personal exemptions but
nearly doubles the standard deduction so fewer taxpayers will itemize
deductions." The vote was on passage. The House passed the bill by a
vote of 227 to 203. The Senate later passed a slightly modified version
of the bill, which the House later agreed to. President Trump later
signed an amended version of the bill into law. [House Vote 692,
12/19/17; Congressional
Quarterly, 12/18/17;
Congressional Actions, H.R.
1]
2017: Fitzpatrick Voted For The House GOP's 2017 Tax Reform Plan Which
Significantly Cut Taxes For The Rich And Corporations And Lowered The
Cap For The Mortgage Interest Deduction. In November 2017, Fitzpatrick
voted for reconciliation legislation which significantly altered the
federal tax code. According to Congressional Quarterly, "The bill
substantially restructures the U.S. tax code to simplify the code and
reduce taxes on individuals, corporations and small businesses. For
individuals, it consolidates the current seven tax brackets down to four
and eliminates or restricts many tax credits and deductions, including
by eliminating the deduction for state and local income taxes and
limiting the deduction for property taxes to $10,000 and the interest
deduction for a home mortgage to the first $500,000 worth of a loan.
[...] On the business side, it reduces the corporate tax from 35% to
20% and establishes a 'territorial' tax system that would exempt most
income derived overseas from U.S. corporate taxation. It allows
businesses to immediately expense 100% of the cost of assets acquired
and placed into service, and for small businesses it raises the Section
179 expensing limit to $5 million for five years. It also establishes a
25% rate for a portion of pass-through business income that would
otherwise have to be paid at the ordinary individual tax level, and for
small businesses where an individual would receive less than $150,000
in pass-through income it taxes the first $75,000 of that income at a
9% rate." The vote was on passage. The House passed the bill by a vote
of 227 to 205. President Trump later signed an amended version of the
bill into law. [House Vote 637,
11/16/17; Congressional
Quarterly, 11/15/17;
Congressional Actions, H.R.
1]
Legislation Alters The Mortgage Interest Deductions To Cap New
Debt Incurred After November 1st, 2017 At $500,000 And Eliminates
The Deduction For Second Homes And Equity Loans. According to
Congressional Quarterly, "Limits the amount of mortgage interest
that can be deducted to just that associated with the first
$500,000 of a home loan (down from $1 million), and eliminates the
deduction for interest on second homes and home equity loans
(interest associated with existing mortgages as of Nov. 1, 2017,
could still be deducted)." [Congressional Quarterly,
11/15/17]
National Association Of Realtors Opposed The Legislation Because
Doubling The Standard Deduction Would Reduce The Incentive Of Some
To Use The Mortgage Interest Deduction. According to the
Washington Post, "The National Association of Realtors denounced the
blueprint, saying in a statement Wednesday that the proposal to
double the standard deduction would "all but nullify the incentive
to purchase a home" for most taxpayers. With the standard deduction
doubling, more homeowners would probably use that deduction when
they filed their tax returns, rather than taking advantage of the
lucrative mortgage interest deduction." [Washington Post,
9/27/17]