Rep. Kelly Introduces Major Tax Reform 2.0 Bill to Help Families Save Money for Future

Sep 10, 2018 Issues: Economy and Jobs, Tax Reform

Kelly-sponsored “Family Savings Act” is one of three bills in new tax reform package aimed at delivering permanent relief for families, workers, & small businesses

WASHINGTON — U.S. Representative Mike Kelly (R-PA) – a member of the House Ways and Means Committee – issued the following statement today after introducing the Family Savings Act of 2018 (H.R. 6757), one of the three planks of the Tax Reform 2.0 package unveiled this afternoon and supported by Ways and Means Committee Chairman Kevin Brady (R-TX) and every Republican member of the committee. Additionally, Rep. Kelly is an original co-sponsor of the other two pieces of the package: the Protecting Family and Small Business Tax Cuts Act of 2018 (H.R. 6760) and the American Innovation Act of 2018 (H.R. 6756).

Rep. Kelly:

“The enactment of the Tax Cuts and Jobs Act nearly nine months ago was a legislative milestone and a historic victory for the American people. This new law – the first of its kind in 31 years – has met and surpassed expectations by turbo-charging our economy, boosting businesses of all sizes, and giving hardworking taxpayers at every income level more take-home pay. The facts are clear: all in all, tax reform has been an undeniable success story.

“Tax Reform 2.0 is the logical next step for our committee to build on the success that our country has been seeing. Among this commonsense package’s important pieces, I am especially proud to be the lead sponsor of the Family Savings Act to help families of every background prepare for their future. With so many households receiving new bonuses and bigger paychecks thanks to the Tax Cuts and Jobs Act, now is the perfect time to make the tax cuts permanent and make sure that Americans have the financial security they need to handle anything that life may throw their way. This is about helping every American enjoy a happy retirement and peace of mind in the years when they deserve it most.”

Ways & Means Committee Chairman Brady:

“The Tax Cuts and Jobs Act changed the trajectory of our economy for the better. Now it’s time to change the culture in Washington where we only do tax reform once a generation. This legislation is our commitment to the American worker to ensure our tax code remains the most competitive in the world. 

“We are providing certainty. The Protecting Family and Small Business Tax Cuts Act locks in the tax relief from the Tax Cuts and Jobs Act – which included a nearly doubled standard deduction, a doubled Child Tax Credit, lower rates across the board, and a historic 20-percent pass-through deduction for Main Street businesses. This will create over 1.5 million new jobs, continue to raise wages, and boost long-run GDP. 

We are creating financial security. The Family Savings Act focuses on helping families save more and earlier for the future by making it easier for businesses to offer retirement savings plans while ensuring workers can easily participate in these plans. This will help give our families the financial stability they need for whatever life throws their way. 

“We are helping entrepreneurs grow. The American Innovation Act will increase innovation by helping new entrepreneurs move from the kitchen table to Main Street and beyond. The country that wins the innovation race wins the future, and it’s time for our tax code to help us get there. 

“Last year we said goodbye to America’s old, broken tax code. Under our new system, we’re seeing incredible job growth, bigger paychecks, and a tax code that works on behalf of families and American businesses. Now it’s the time to ensure we never let our tax code become so outdated again. We look forward to bringing these bills to the Committee soon.”

BACKGROUND: The Family Savings Act contains numerous provisions of a bipartisan bill previously introduced by Rep. Kelly known as the Retirement Enhancement and Savings Act (RESA) of 2018 (H.R. 5282). Rep. Kelly is the founder and co-chairman of the bipartisan House Retirement Security Caucus.

NOTE: A one-page summary of the Family Savings Act can be viewed here.