Rep. John Katko, R-Camillus, represents the 24th Congressional District.

By John Katko | Special to Syracuse.com

Last week, the House of Representatives voted on the first major reform of the United States Tax Code in more than 30 years. Like every bill that comes before the House for a vote, I studied this measure and analyzed its impact on the individuals and families who live and work in our community. After careful deliberation, I cast my vote in favor of this measure.



I supported this legislation for two basic reasons: The vast majority of my constituents will receive a tax cut under this plan, and this effort will allow local businesses to invest in Central New York and our workforce.



The average family in the 24th Congressional District makes $55,000 per year. Under this legislation, that family would see an average tax cut of $1,000 annually. This is long overdue and necessary relief. In addition to keeping more of what they earn, individuals and families in Central New York will see higher wages and the creation of more jobs due to increased economic growth. The nonpartisan Tax Foundation calculates the bill will lead to the creation of 57,834 new jobs in New York state, and an increase in after-tax income of $2,335 for the average family.



This bill nearly doubles the standard deduction amount - which all individuals and families are able to claim - from $6,350 to $12,000 for individual filers and from $12,700 to $24,000 for joint filers. It increases the child tax credit - available to all filers with children - from $1,000 to $1,600 per child, and provides a $300 increase to the family tax credit. These increased deductions and credits not only reduce the tax burden for the majority of working families in Central New York but also eliminate the need for many to itemize deductions. For roughly 90 percent of my constituents, the yearly headache of rounding up receipts, forms and documentation in order to fill out confusing tax forms will be a thing of the past.



In addition to the tax cuts this bill will provide for families in my district, it will give local businesses the boost they need to create jobs and grow our local economy. Our business tax rate - currently the highest in the industrialized world - has put our workers at a major disadvantage and lured companies overseas. In Upstate New York, this is evidenced by the abandoned factories peppering our towns. By simply leveling the playing field, this bill will give local businesses and manufacturers the tools they need to invest in our workforce and compete on the world stage. Our local manufacturers have long affirmed the need for comprehensive reforms, which is why this bill has the earned the support of the Manufacturers Association of Central New York (MACNY), the leading organization representing our region's manufacturing base.



If this reform becomes law, the vast majority of Central New Yorkers will have more money in their pockets. They will face far fewer headaches in preparing their taxes each year, and our economy, long hobbled by the highest business taxes in the industrialized world, will grow.



This bill is not perfect and as this legislation moves forward, I will continue to advocate for the removal of several provisions I oppose, including the elimination of the Historic Preservation Tax Credit and Private Activity Bond credits. I've already worked hard with my New York colleagues to change this bill for the better, by restoring a deduction for local property taxes.



When I first ran to represent Central New York in Congress, I pledged to fight to create jobs in our community, to support economic revitalization, and to ensure local families could take home more of what they earn. These are promises I've taken seriously. With the passage of this bill through the House, I believe we've taken the first step away from an antiquated, overly-complex, and broken tax system. That work will continue in the coming weeks as this legislation moves to the Senate. As always, I will be fighting in the best interest of Central New York.



