Washington, D.C. – House Majority Leader Kevin McCarthy (CA-23) appeared on Fox News’ The Story with Martha MacCallum last night to discuss the Tax Cuts and Jobs Act—a major tax cut and reform bill.
Excerpts of the interview are below, or you can watch online here.
On how this plan helps all Americans:
“This is what happens: we double the standard deduction. So if you are single, instead of the first $6,000 is tax free, it’s now $12,000. A family, if you are a couple, the first $24,000. For an average family of four, the first $55,000 you make is tax free. But then we even lower small business taxes, which creates more jobs, to the lowest rate it has been since prior to World War II. So everybody’s rate is going down.”
On the state and local property tax (SALT) deduction:
“Remember, I’m from California. So what we do in this bill is lower the rate, and double the standard deduction. Fewer people actually have to itemize, but the other thing that we do here is we eliminate the AMT (Alternative Minimum Tax). So if you take a household in California that has a high SALT, which is the state and local deduction, what happens is that eliminating the AMT is actually worth more than the state and local deduction.”
On how looking at the entire bill is important:
“If you look at the overall tax bill, if you eliminate the AMT, you lower the rates, you move up the standard deduction, what happens is you will pay less tax. So that’s what happens. I have taken all the IRS data for every congressional district. I have walked members through it so they can see where the new tax burden will fall. From day one, what’s going to happen at the start of the new year, people will see more in their paycheck.”
On how the final package will be a tax cut bill:
“I think the Senate may have a different version. They are going to come out tomorrow. We are going to move this bill out of out of Ways and Means tomorrow. We will have this on the floor next week, the Senate will then pass theirs and we will go to conference. The one thing you have to remember, they are all tax cuts.”