2017: Schweikert 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, Schweikert 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: Schweikert 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, Schweikert 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]