Below are a few of the highlights of the Camp/Cantor substitute, and how it will impact Minnesotans and families across America .
The legislation will reduce the lowest individual tax rates from 15% to 10% and from 10% to 5%.
As a result, every taxpaying-family in America will see an immediate increase in their income with an average benefit of $500 in tax relief from the drop in the 10% bracket and $1,200 for the drop in the 15% bracket. A married couple filing jointly could save up to $3,200 a year in taxes.
And according to research done by The Heritage Foundation, 272,306 filers in Minnesota’s 6th District will benefit from the reduction in the 10% bracket and 228,926 filers will benefit from the reduction in the 15% and the 10% brackets.
The legislation allows small business to take a tax deduction equal to 20% of their income.
In fact, small businesses (those employing less than 500 individuals) employ about half of all Americans, yet they can be subject to tax rates that siphon away one-third or more of their income. This legislation will immediately free up funds for small businesses to retain and hire new employees.
In Minnesota, there are 498,606 small businesses with 500 or fewer employees and according to the Small Business Administration Office of Advocacy, they represent 98.0% of the state’s employers while having created 78.4% of the state’s net new jobs from 2004 to 2005. It's vital that we lower the tax burden on these small businesses.
The legislation also includes a home-buyers credit of $7,500 for those buyers who can make a minimum down-payment of 5%.
This credit will go a long way in giving potential buyers the incentive they need to purchase homes now to help turn around our stagnant real estate market.
For more information about the plan, check out the website for the Office of the Republican Whip.