House leaders unveiled their latest effort to give America a tax cut on Thursday, giving a clearer picture of who would get what if Republicans in Washington make good on one their biggest campaign promises.
The Tax Cuts and Jobs Act, a top priority for President Trump, would mean lower tax bills for many middle-class Americans, with especially large cuts for many high-earners and small business owners. There are downsides, including adding $1.5 trillion to the U.S.’s debt over the next decade. And Democrats are opposed to the changes (as are some Republicans).
The President, with characteristic salesmanship, touted the bill as “massive tax relief for the American people” in a statement Thursday.
But how would it really shake out for you?
Experts are still pouring over the details. But a report by the Tax Foundation, a right leaning Washington think-tank offers an early read. Many middle class families would enjoy at least a modest tax cut, benefiting from provisions like a doubling of the standard deduction to $12,000 for individuals ($24,000 for families) and an enhanced child tax credit.
The tax cuts grow bigger for higher earners — and especially for small business owners who have “pass-through” income.