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October 18
1876 - Southern Pacific begins subdividing town of Newhall (original location at Bouquet Junction) [story]

The U.S. House of Representatives passed H.R. 1, the Tax Cuts and Jobs Act, by a vote of 227-205 in the chamber Thursday.

Representative Steve Knight (R, CA-25), is sending this letter to constituents who inquire about the bill’s provisions.

Thank you for contacting me with your thoughts about H.R. 1, the Tax Cuts and Jobs Act. I appreciate hearing from you on this very important issue.

As you may know, the United States tax code is an incredibly complicated and cumbersome maze of loopholes, special interest breaks, and regulations that have overburdened hardworking Americans and stunted the growth of our economy.

It’s been over 31 years since the last time Washington delivered comprehensive tax reform to American businesses and families. In that time, our world and economy has changed dramatically. It’s about time that our country has a tax code that reflects this change and contributes to growth that will benefit the middle class.

This is why I voted in support of the Tax Cuts and Jobs Act as it passed in the House of Representatives on November 16, 2017.

Simply put, this bill represents unprecedented tax relief for the vast majority of Americans that will allow families to keep more of their hard earned money to save, invest, or spend it however they best see fit.

Rep. Steve Knight (CA-25)

Rep. Steve Knight

While many are falsely claiming that this is a handout for the wealthiest Americans, the reality is that this bill maintains the existing 39.6% tax rate for the top bracket of incomes. Simultaneously, the individual tax rate for low and middle-income brackets would be reduced to 0 percent, 12 percent, 25 percent, and 35 percent.

In addition, the Tax Cuts and Jobs Act nearly doubles the standard deduction to allow people to get a larger tax refund when filing their taxes in April.

This plan also allows taxpayers in high-tax states to deduct state and local property taxes up to $10,000 from their federal taxable income as well as up to $500,000 for new mortgage interest costs.

This bill does not affect already existing mortgages.

According to a study by the nonpartisan Tax Foundation, a middle-income family in California would see an increase of $2,932 in their annual after-tax income. This money can be used to invest in education, pay for a vacation, improve a home, or any other expense best seen fit.

There is a lot of misrepresentation about the new tax rates for businesses. As it stands today, the significant difference between the U.S. and foreign corporate tax rates creates a negative incentive for shareholders to move business abroad. When they do, they remove jobs, investment, and wage growth potential.

The lower business rates in the bill are designed for one reason only: to bring those jobs and resources back home. By doing so, the Tax Cuts and Jobs Act will create more opportunity for full-time work and grow the economy at a steady and strong rate. Nonpartisan studies have estimated that this could lead to an economic growth rate of 3.9 percent and 3.1 percent growth rate in wages.

These numbers on a national level are unprecedented in the last several decades. This will create more wealth for all Americans, and many predict that this will increase tax revenues even with lower rates.

Small businesses are some of the biggest winners of this tax plan. Given the current conditions where more businesses are exiting the market than entering, this bill is imperative for small business sustainability.

According to the Small Business Administration’s Office of Advocacy, 99.9 percent of all firms are small businesses. It is our women-owned, minority-owned and veteran-owned small businesses that represent half the GDP and create half the jobs in this country. This bill will unleash the ability for people to become entrepreneurs and live the American dream.

Our national tax code is in dire need of reform. This bill is a major step forward in sparking economic growth and boosting job creation and wages. I am pleased that this bill passed in the House of Representatives and I am committed to working with my colleagues in both the House and Senate to continue to improve this legislation as the legislative process continues.

To read the bill in its entirety and find more information on it, click [here]. To read the Tax Foundation’s nonpartisan study of the bill, click [here].

As always, I appreciate your feedback and look forward to hearing from you in the future. It is an honor to represent you in Congress. For more information on constituent services, current legislation, and to sign up for my E-newsletter, please visit my website at www.knight.house.gov.

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  1. Suzi S Smith Suzi S Smith says:

    Yup. Those private jet owners really need a break!!!!

  2. Valerie Kirk Valerie Kirk says:

    How about a break from the gas tax and the increase to our car registrations ?

  3. Ethan Jewell Ethan Jewell says:

    Narrator: “As it turns out, there was no relief.”

  4. Bryan Hays Bryan Hays says:

    Yes! “Unprecedented Relief” for corporations and the richest among us. They propose borrowing $1.5 trillion and give that money to corporations and the rich in the form of tax cuts. Individual rate cuts expire in 2025 but corporate cuts are forever. This plus 13 million thrown off their Obamacare insurance make this proposal from Republicans the most ridiculous yet…and that’s saying something!

    • Bryan Hays Bryan Hays says:

      And then, if past is prologue, when the promised growth does not happen and the deficit skyrockets (like last times), Republicans will declare Social Security and Medicare and the poor, sick and elderly as the cause of our deficit and demand cuts to programs that benefit these folks. We’ve seen this movie before. It doesn’t end well for the people. Don’t be fooled…again.

    • Bryan Hays I agree with you. Those who don’t remember history are doomed to repeat it and sadly it seems that our nation is repeating mistakes of the past. The outcome this time will be no different that the last times.

    • But democrats were SO effective with the economy last 8 years right? 😆 All they’d did wasn’t spend more. And what happens when you raise taxes on corporations? They’d take their jobs overseas and millions lose their jobs. This is why democrats are TERRIBLE at economics.

    • Bryan Hays Bryan Hays says:

      Except that corporate America and the stock market reflection of the largest corporations reveals that they’re performing admirably at this time. Stocks and share prices are at all time highs. They don’t NEED a tax cut, times are already rich for them. Same with the richest among us. Trickle-down, supply-side economics is a proven failure and has been time and time again. The promised growth never happens and the deficit explodes. We’ve seen this over and over. That’s why Republicans are so bad with the economy.

    • Bryan Hays Bryan Hays says:

      And yes, the Democrats took the stock market from 6,800 (after Republican policies crashed it in ’08) to 20,000 during their watch.

    • Speaking of history, Obama is first president since Great Depression never to achieve annual GDP of 3%. I’d say this new course is set to Make America Great Again #ca4maga 🇺🇸

    • Beth Moore Beth Moore says:

      Are you a bot david?

  5. Don Teller Don Teller says:

    To say that the tax bill will actually lower taxes for the middle class They had to raise the definition of middle class to $400,000

  6. Jared Axen Jared Axen says:

    So what? You couldn’t do anything about it folks.

  7. Greg Brown Greg Brown says:

    Bye bye Knight. Your days in office are limited by our vote.

  8. Yes. Let’s tax the corporations. That’ll make them want to stay in the US huh?

    • If they want to go, then they should. However, we should tax their products double in comparison to those companies who stay in the country.

    • Cause that’ll encourage job growth. Democrats tax corporations. They leave the country. Then they wonder why jobs are down but somehow blame republicans.

    • Bryan Hays Bryan Hays says:

      Get your facts right, Kyle. At the end of the last Republican administration we were hemorrhaging jobs every month during the end. 2.6 million jobs lost during 2008…the last year of a Republican president with a Congress that was Republican for 12 of the 14 years prior (1994-2008). Kyle your facts are flawed. Your idea that Democrats are bad for the economy is belied by history…and facts.

    • Ryan Arthur Ryan Arthur says:

      Never under estimate the power of greed.

    • And then Obama presided over he slowest recovery from the recession. And when Trump came to office the Dow skyrocketed to its highest levels ever. And then Obama doubled the national debt. Democrats only make the economy worse. Roosevelt PROLONGED the Great Depression. Get your facts right idiot.

    • Bryan Hays Bryan Hays says:

      No, Kyle. The Dow was reaching record heights during the previous administration. Get ur facts right, man!

    • Bryan Hays Bryan Hays says:

      kyle, once again…2008 wall street and economy DOA after 8 years of Republican president and policies. 2016 wall street at all time highs and economy recovering from Republican crash on Democrat president’s watch.. What’s not to get? It’s history. These facts are indisputable. Your contention that “Democrats only make the economy worse” could not be more misinformed.

    • Bryan, I hope you do realize you’re having a rational fact based debate with a Faux parroting Trumpian rock! It’s like teaching a monkey to play the piano. You can’t accomplish it and it just pisses off the monkey!

  9. HIs lips are covered in Trump’s feces.

  10. Stop sanctuary cities in CA.

  11. Ananda Mei Ananda Mei says:

    Dear SCVTV and its readers: this is a Press Release written by his staff, not journalism.

  12. Ananda Mei Ananda Mei says:

    He voted IN FAVOR OF: eliminating personal exemptions for self, spouse and children (that’s over $20,000 alone for my family), hugely reducing deductions of my property taxes (we all pay ASTRONOMICAL property taxes in dollars), eliminating deductions of the ASTRONOMICAL state income taxes we pay, a reduction on Mortgage Interest deduction (extremely valuable to every homeowner) and several others. How does he figure this was advocating for his voting base?

  13. Can this guy open his mouth without a lie falling out?

  14. Knight is on his way out, as are many selfish money-grubbing, self-serving republicans. He will go down with Trump and his gang.

  15. Gary Bagwell Gary Bagwell says:

    Death penalty for corporations.

  16. Linda Tarnoff says:

    Am single filer, I itemize and this doesn’t help me!

  17. Dan says:

    Obvious to anyone who reads, this tax overhall is bad for the vast majority of taxpayers in our District. That Steve Knight would come on here and tell us how good it is for us smacks of being dumb, disrespectful or both. Dumb because Knight apparently figures that anyone who gets on this site doesn’t read anything else. And disrespectful because he assumes people are going suck down the garbage he spews. In the last few pages, this bill specifically reduces the distance traditionally held between church and state. Why would Steve vote against California’s best interests? If you want to know who Steve Knight sees as his real constituency, Google ‘Steve Knight campaign contributors,’ and you’ll see all the corporations and millionaires who have given him four- and five-figure campaign donations. While you’re at it, look up Steve’s Congressional voting record…it is very rare that he votes against anything, and most of these issues are full of pork.

  18. Marc Winger says:

    A middle-class tax cut? Hardly.
    Why would anyone in CA believe Knight’s sales job?

  19. cBrown says:

    Most of us are not stupid. We don’t buy this B.S. that it benefits the middle class. We actually go out and crunch the numbers and guess what, we are paying more. This Holiday season instead of going out to waste your money on things that only end up in the land fill, show your power by not buying and saving your money….we will need it!!

  20. Joyce Quinn says:

    Congressman Steve Knight, please do not support this tax bill as it is not good for your constituents. We don’t want it !

Leave a Comment

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