GOP congressman encouraged by tax reform’s impact

About seven months after historic tax reform was enacted, Congressman Roger Williams (R-Austin) believes the economic impact on the country is giving Republicans momentum for the fall.

Williams, whose district includes Lampasas County, is optimistic that further reforms could pass in October, ahead of the November elections.

The Tax Cuts and Jobs Act passed Congress in late 2017, backed solely by Republicans. Among its key provisions, it lowers the corporate and individual income tax rates, doubles the standard deduction, expands the child tax credit and repeals the individual health care mandate.

According to the U.S. House Committee on Ways and Means, the Tax Cuts and Jobs Act will bring an average savings of $2,746 to four-person families in District 25, and $1,764 per single taxpayer.

Williams credits last year's tax reform with producing 4 percent growth in Gross Domestic Product and a drop in unemployment to around 4 percent. Some of the areas seeing the biggest boost, he said, are the energy sector, retail and start-up businesses.

The congressman still has economic goals that have not been fulfilled, but he says tax reform "was the most important. You had to cut taxes to create more revenue and put people to work."

In the next round of reform legislation, Williams hopes to trim corporate tax rates from 21 percent to 20 percent, cut capital gains taxes, cut taxes on dividends, and slash payroll taxes in half for both employers and employees.

His other goals include reducing tariffs and abolishing the Bureau of Consumer Financial Protection. Reforms were made to the bureau – formerly the Consumer Financial Protection Bureau – to give it more congressional oversight and accountability while streamlining outdated processes, and another bill regulating the agency is on its way to the Senate. Tariffs are one of the few issues on which the president and the Republican congressmen have parted ways.

"I believe President Trump when he talks about fair trade … although I'm not a fan of tariffs," Williams said.

Congressman Kevin Brady, chairman of the House Ways and Means Committee, aims to pass the second round of tax overhaul before the mid-term elections.

"I think we'll get it passed the first of October," Williams predicted.

Supporters of the tax cuts say a growing economy will produce an increase in overall tax revenue despite the decrease in rates levied.

"We're taking in more money than we have ever before … $1.3 trillion in revenue," Williams said.

A problem remains in balancing the budget, the congressman added, "if expenses are out of control."

Williams plans to visit his district next month, but at press time no details were available on when a visit to Lampasas may take place.