Banks Supports Making Tax Cuts for Families and Small Businesses Permanent

Friday, Congressman Jim Banks (IN-03) released the following statement after voting for the Protecting Family and Small Business Tax Cuts Act:
“When I travel across northeast Indiana, I constantly hear about the positive results from the Tax Cuts and Jobs Act. Because of tax reform, Hoosiers are seeing more opportunities and taking home larger paychecks. This legislation contains key provisions to make many of the tax cuts that help families and small businesses permanent.” This legislation is one of three bills the House passed this week that comprise a Tax Reform 2.0 plan. More information about these bills below:
Protecting Family and Small Business Tax Cuts Act
• Makes the lower taxes for small businesses and middle-class families permanent
• Makes the larger standard deduction and larger child tax credit permanent

American Innovation Act
• Allows startup companies to deduct $20,000 in startup costs, an increase from $5,000, to promote entrepreneurship and innovation

Family Savings Act
• Creates new tax-preferred Universal Savings Account with an annual contribution cap of $2,500
• Expands 529 plans to include apprenticeship fees, homeschooling expenses and student loan payments
• Allows parents to withdraw money from retirement accounts for expenses related to a new child tax-free
• Increases the ability of small businesses to pool together and form Multiple Employer Plans to increase access to retirement accounts for workers
The tax cuts for individuals are currently set to expire in 2025. Friday’s legislation passed the House by a vote of 220 to 191. All three bills now head to the Senate for consideration.