The final tax reform bill will pass the Senate today after Florida Sen. Marco Rubio agreed to vote yes on the bill. Rubio earlier threatened to vote no on the tax reform bill because the child-care tax credit wasn't high enough.
The final tax bill, which President Trump will sign, entitles Americans to a $2,000 child tax credit for each child. That doubles the previous child tax credit.
But Rubio was a hold out because the refund portion of the child tax credit was only $1,100.
That means Americans are entitled to use the tax credit ($2,000 for each child) to offset what they owe the government. But if they owe nothing, then they are only entitled to $1,100 of (instead of the full $2,000) in their tax refund checks.
Rubio said the $1,100 refund was not high enough. He wanted the refund increased to $2,000 as well. Rubio reportedly said, "If it stays at $1,100, I'm a 'no.'"
After meeting with the conference committee, Rubio changed his vote to a yes, meaning the tax bill will pass today.
According to GOP Rep. Kristi Noem, [Rubio]'s going to get it: The refundable part of the child-care tax credit has been increased to $1,400 per child."
Other provisions in the Senate tax bill include:
1. Doubles the standard deduction to $24,000
This means anyone who earns $24,000 or less a year pays NO income tax. You keep every dollar you earn.
2. Decreases standard tax rate for families to 12%
Families who earn $45,000 or less annually will now pay 12 percent income tax instead of 15 percent.
3. Simplifies the tax form
The new tax form is so simplified that you can prepare your taxes in 15 minutes instead of 15 hours!
4. Kills Obamacare insurance mandate
The new tax bill kills the Obamacare insurance mandate that forced Americans to pay a stiff fine if they didn't have Obamcare. The Supreme Court called it a tax.
The new changes take effect in February 2018.
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