Photo credit: UpstateNYer (CC-By-SA 3.0)
Photo credit: UpstateNYer (CC-By-SA 3.0)

The Tax Cuts and Jobs Act of 2017 (H.R. 1) passed the U.S. House of Representatives on Tuesday morning on a 227 to 203 vote and then passed 51 to 48 in the U.S. Senate. Due to a procedural glitch, the House had to vote on it once again where it passed again 224 to 201.

Iowa’s entire Republican Congressional Delegation voted in favor of the bill.

Congressman Rod Blum (R-Iowa) representing Iowa’s 1st Congressional District:

Today, I cast my vote in favor of this historic bill.  My criteria for tax reform has been based around these three goals: simplifying tax preparation for families, lowering taxes for middle-income workers, and reigniting our economy. While not perfect, this bill is a positive step forward, and it achieves all three of those criteria.

With the doubling of the standard deduction, doubling of the child tax credit, and the lowering of tax brackets for all income levels, middle-income families will see a reduction in their taxes. Letting people keep more of the money they earned is good economic policy.  Career politicians in Washington tend to believe that all money is the government’s money and letting people keep more of their hard earned money is “spending” that the government can’t afford.  Tax cuts are not spending – rather government spending is spending.  We don’t have deficits because we tax too little – in fact, tax revenues to the federal government are at all time record highs. We have deficits because we spend too much.

I am very confident that increased economic activity will pay for this $1.5 trillion tax cut. Just as they did in the sixties and again in the eighties after the Kennedy and Reagan tax cuts – revenues to the federal government will increase.

We fought hard for certain provisions to be kept or added to the conference report. Provisions such as the Federal Historic Tax Credit, continued tax-exemption for private activity bonds, the wind energy production tax credit, the Section 199 deduction for farmers and their cooperatives, the Medical Expense Deduction, and the Orphan Drug Tax Credit.

Additional tax deductions maintained in this bill that we advocated for include permitting teachers to deduct classroom supplies they’ve purchased with their own money, tax-exempt 529 education savings plans, tax-deferment for 401(k)s and IRAs, the mortgage interest deduction, and the state and local tax (SALT) deduction. Keeping these provisions in our tax code is a win for Iowans.

Congressman David Young (R-Iowa) representing Iowa’s 3rd Congressional District:

When visiting with Iowa families across the Third District, I’ve heard too many are suffocating from an overburdened tax code riddled with protections for special interests while leaving hardworking taxpayers paying the bill. Today is a great day for Iowa’s families, farmers, and main street job creators who will soon see the needed relief they deserve.

When the House passed the first version of this bill, I said it was not perfect and I would continue fighting to make it better, and I was proud to fight to ensure Iowa’s voice was heard as we worked to deliver a solution giving Iowans more control over their hard-earned money.

Congressman Steve King (R-Iowa) representing Iowa’s 4th Congressional District:

Passage of the Tax Cuts and Jobs Act is an early Christmas present to American taxpayers. When this bill becomes law, the American economy will be poised to have both a Happy New Year and a Happy New Decade of 3% GDP growth or more. The Tax Cuts and Jobs Act is a welcome gift to everyone who believes Americans should be allowed to keep more of their hard earned money. I look forward to Iowans enjoying the jobs and income growth that will result from this bill over the coming years.

Importantly, this bill repeals the Individual Mandate in ObamaCare. This is the most concrete step that Congress has taken towards repealing ObamaCare, and it sets the stage for me to lead additional repeal efforts in 2018. ObamaCare is the coal in America’s stocking, and we need to rid ourselves of it.

U.S. Senator Joni Ernst (R-Iowa) released the following statement after the Senate vote:

We are one step closer to helping hardworking, lower-and middle-income Iowans keep more of what they’ve earned. This tax reform package will also strengthen our economy and ensure job creators of all sizes see relief from an overly-complicated tax code.

Additionally, I am thrilled that two of my proposals have been included in the final bill; the SQUEAL Act ensures legislators are offering up their own unnecessary tax break for living expenses in the Washington, D.C. area, and our bipartisan Investing in Opportunity Act will spur economic growth for many distressed rural communities across Iowa and the country.

U.S. Senator Chuck Grassley (R-Iowa) released a statement after the Senate vote:

This historic legislation makes good on a promise to deliver tax relief to Americans from every walk of life and income level. Its passage is good news for working families, U.S. jobs and industry and an economy that was stagnant for far too long. It will let Iowans keep more of their own money, so they can choose how best to spend what they’ve earned. Wages will also grow and jobs will return to our shores as a result of making American industry and workers more globally competitive.

There have been some misconceptions about what this legislation does, which ideological opponents of lower taxes have helped sow. Iowans are understandably paying close attention to how they will be impacted. Iowans should rest assured they will begin seeing more in their take home pay almost immediately, and that will continue for years to come. This tax reform legislation lowers rates on every income level, and the progressivity of the tax code is maintained, ensuring that Iowans of all stripes will share the benefits of tax reform, and no one group is treated unfairly. As just one example, the average family of four with two children will see a tax cut of more than $2,000, and millions of lower-income Americans will be removed from the tax rolls entirely. That will make a real difference in the lives of so many hardworking Iowans.

This bill also repeals the unfair and regressive Obamacare individual mandate tax. The bottom line is that this gives Iowans the freedom to make health care choices that work best for them, instead of being forced by the government to purchase an unaffordable product they either don’t want or don’t need. In 2015, more than 52,000 Iowans were required to pay the individual mandate tax, even though more than 80 percent of those who paid the tax made less than $50,000 a year. That’s a tax on middle-class families, and I’m glad to see it gone.

Governor Kim Reynolds (R-Iowa) applauded the passage of the bill.

Congress took an historic step today with the passage of the Tax Cuts and Jobs Act. In the more than three decades since the tax code was overhauled in 1986, the global economy has become faster-paced and more interconnected, pitting Iowa’s workforce and job creators against international competition. Iowans deserve a fairer, simpler, more competitive tax code, and I commend Congress, particularly members of the Iowa delegation, and the administration for working tirelessly to get that done.

Congressman Dave Loebsack (D-Iowa) representing Iowa’s 2nd Congressional District was the only member of Iowa’s Congressional Delegation to vote against the bill. He released the following statement after the House’s original vote.

The Ryan-McConnell tax plan that passed today will hurt too many Iowans. Congress should have done a better job fighting for Iowa’s working families and providing relief for small businesses. Instead of increasing take home pay for all middle class families, the Ryan-McConnell plan focuses on slashing taxes for millionaires, billionaires and corporations. All of this is laying the ground work to cut Medicare and Social Security, gutting the benefits seniors have earned after a lifetime of work. It’s just wrong.

In order to truly get the economy going we must reward hard work and incentivize and encourage companies to invest in jobs in Iowa and not ship them overseas. As a father and grandfather, I strongly believe we also must address our nation’s debt in a reasonable way, not on the back of seniors, the middle class and hardworking families. Finally, it is fundamentally wrong that corporations and the wealthy, which already don’t pay their fair share in taxes, will receive new, special tax breaks at the expense of too many hardworking Iowans and future generations.

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