Washington, DC – Today, U.S. Representative Young Kim (CA-40) voted in favor of the Senate Amendment to H.R. 1, which secures historic tax cuts for working families in California’s 40th District and across the nation.
Rep. Kim stood up to the White House and House leadership to secure an increase of the cap on state and local tax (SALT) deductions to $40,000 for individuals and families making less than $500,000 a year, allowing working Californians and Americans to keep more of their hard-earned money. She also fought to remove the cap on SALT deductions for small businesses, preventing a 2% tax increase.
In addition to increasing the SALT cap, the bill makes life more affordable for working Americans, middle-class families, and small businesses by:
- Extending middle-class tax cuts signed into law through the Tax Cuts and Jobs Act in 2017 to avoid a 17% tax hike for the average CA-40 family;
- Permanently increasing the Child Tax Credit to $2,200 per child;
- Exempting individuals from a tax on qualified tips for up to $25,000 for the next four years;
- Providing relief to seniors by increasing the Social Security tax deduction to $6,000 per individual;
- Creating a $12,500 overtime pay deduction; and,
- Supporting financial literacy by creating a pilot program to give newborns a $1,000 tax-advantaged investment account.
“For too long, middle-class Americans, working families, and small businesses I represent have been hurting from high taxes, rising prices, and skyrocketing living costs made worse by out-of-touch policies from Sacramento and Washington,” said Rep. Young Kim. “This bill lowers taxes and provides relief to put money back in the pockets of everyday Americans. I will keep fighting to make life affordable for California’s 40th District and ensure our communities are great places to live, raise families, and start businesses.”
“This bill takes important steps to ensure federal dollars are used as effectively as possible and to strengthen Medicaid and SNAP for our most vulnerable citizens who truly need it. I will keep working to get our country back on the right track and protect the American dream for future generations,” she continued.
“Over the last seven years, the 20% Small Business Tax Deduction has helped America’s small businesses grow and hire,” said NFIB California State Director John Kabateck. “Rep. Young Kim understands the importance of the Small Business Deduction and has been a leading voice in Congress to make it permanent.”
According to the U.S. Chamber of Commerce, nearly 25,000 small and pass-through businesses across Rep. Kim’s district will see an increase of approximately $21,906,300 in their qualified business income deduction through the bill’s passage.
The bill also invests in America’s future by:
- Modernizing our air traffic control system to ensure safe and efficient air travel;
- Boosting our shipbuilding capabilities, investing in our military, and improving quality of life for troops;
- Bolstering border security funding to increase border technologies and support our border patrol and CBP officers; and,
- Supporting educational opportunities by protecting access to the Pell Grant program.
