U.S. Representative Young Kim of California’s 40th District has voted in favor of the Senate Amendment to H.R. 1, which promises significant tax cuts for working families both within her district and nationwide.
Rep. Kim has actively opposed the White House and House leadership to ensure an increase in the cap on state and local tax (SALT) deductions to $40,000 for individuals and families earning less than $500,000 annually. This change aims to allow Californians and other Americans to retain more of their income. Additionally, she advocated for removing the SALT deduction cap for small businesses, thereby preventing a potential 2% tax hike.
The bill not only raises the SALT cap but also seeks to alleviate financial burdens on working Americans, middle-class families, and small businesses by extending middle-class tax cuts from the Tax Cuts and Jobs Act of 2017, thus avoiding a 17% tax increase for average families in CA-40. It also permanently increases the Child Tax Credit to $2,200 per child; exempts up to $25,000 in qualified tips from taxation over four years; offers relief to seniors by raising the Social Security tax deduction to $6,000 per individual; introduces a $12,500 overtime pay deduction; and initiates a pilot program providing newborns with 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,” said Rep. Young Kim. “This bill lowers taxes and provides relief.”
Rep. Kim also emphasized that “this bill takes important steps” towards efficient use of federal funds while strengthening Medicaid and SNAP programs.
John Kabateck from NFIB highlighted Rep. Kim’s role in advocating for making permanent the Small Business Deduction: “Rep. Young Kim understands the importance of the Small Business Deduction.”
According to data from the U.S. Chamber of Commerce, nearly 25,000 small businesses in Rep. Kim’s district could see their qualified business income deduction rise by approximately $21 million due to this legislation.
The bill further invests in America’s future by modernizing air traffic control systems for safer travel; enhancing shipbuilding capabilities; investing in military improvements; bolstering border security funding; and protecting access to educational opportunities through Pell Grants.
