Congress has given Americans the best Christmas gift in 31 years. The final tax reform plan was approved by both the U.S. House of Representatives and the U.S. Senate. The measure now moves to President Donald Trump's desk to be signed into law before Christmas Day.
Not one Democrat voted for the tax cut bill. Not one Democrat voted to give parents more money for childcare or tax cuts for small business owners.
The tax cut legislation is the first sweeping tax reform bill in 31 years, and the first bill to give corporations permanent tax cuts to help bring jobs back to America from Mexico, China and other countries.
Under the new tax code the middle class will see more money in their paychecks beginning January 2018. But some rich people will pay more.
Most corporate executives who normally itemized big business expenses, won't be allowed to deduct those expenses next year. Wealthy executives are frantically calling their accountants as it dawns on them that their tax bills will be higher under the new tax code.
Many rich Democrats who swore they would support higher taxes for the rich -- are now crying that their taxes are going up.
The benefits of the new tax bill will be seen in paychecks beginning in January. Americans earning $24,000 or less a year will keep their entire paychecks.
Single moms will see a 70% tax cut and the standard deduction for families nearly doubles from $13,000 to $24,000.
How the Tax Cut Bill Will Affect You
1. Eliminates individual mandate in Obamacare
2. Doubles Childcare tax to $2,000 ($1,400 in refund checks if taxpayer owes nothing)
3. Doubles standard deductions for single filers to $12,000 and for families to $24,000.
4. Keeps the deduction for student loan interest.
5. Allows parents to use 529 savings plans for tuition at private and religious K-12 schools.
6. Allows a $500 credit for each non-child dependent (helps families caring for elderly parents).
7. Keeps the Alternative Minimum Tax ($70,300 for singles and from $84,500 to $109,400 for joint).
8. Raises the standard deduction to 20 percent for pass-through businesses
9. Deduct up to $10,000 in state and local taxes.
10. Allows taxpayers to deduct medical expenses.
11. Retains tax credits for electric vehicles and wind farms.
12. Cuts taxes on beer, wine, and liquor.
Read more on how the bill affects you.
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