Press Releases

WASHINGTON – Congressman French Hill (AR-02) issued the following statement after supporting a second comprehensive tax reform bill that will help to spur small business growth, provide financial security to families, and assist entrepreneurs with startup costs and capital:

“Tax reform has meant real, tangible change for hardworking Arkansans and Americans. A renewed business optimism is consistent with Arkansas’s announcement this week that personal income in Arkansas grew 5.1 percent for Arkansas families in the second quarter of 2018. We’ve seen tremendous, healthy growth in our local economies in our state since we passed the Tax Cuts and Jobs Act in December 2017. Today, we’re keeping the momentum going by passing a second tax reform package that delivers Arkansans and Americans permanent individual tax rates, which will help boost employment opportunities and increased wages, promote start-up businesses, and allow families to save more and earlier for their futures.”

Background

The Tax Reform 2.0 package includes the following bills:

• The Protecting Family and Small Business Tax Cuts Act, H.R. 6760, extends major individual income and estate tax provisions from 2017’s Tax Cuts and Jobs Act that are currently scheduled to expire at the end of 2025.

• The Family Savings Act, H.R. 6757, includes a number of reforms to retirement accounts, similar to those from the Retirement Enhancement and Savings Act and creates small universal savings accounts. Individuals would be able to contribute up to $2,500 into the accounts on an annual basis, with any withdrawals being tax free.

• The American Innovation Act, H.R. 6756, allows businesses to deduct their start-up costs. Firms could deduct the lesser of their start-up expenses or $20,000. The $20,000 amount would be reduced for firms with more than $120,000 in expenses. Expenses that could not be deducted immediately would be amortized over 180 months.