Merry Christmas, America. This year we must have been really good, because there’s about to be a lot more cash in our pockets. Congress approved the new and improved tax reform bill, which has now been sent to Trump’s desk.
With a 224-201 House vote, Congress sent the $1.5 trillion package to Trump’s desk. The biggest rewrite of the federal tax code since the Reagan administration will usher in steep rate cuts for American companies, double the deduction millions of families claim on their annual returns and make a host of other changes taking effect in a matter of weeks.
“This bill means more take-home pay. It will be an incredible Christmas gift for hard-working Americans,” Trump said during a Cabinet meeting moments before the vote.
While the bill already earned House approval earlier Tuesday, the Senate had to ship it back for a final vote after stripping out three provisions that violated chamber rules, in a last-minute glitch. Twelve Republicans once again defected Wednesday to vote with Democrats in opposition. (via: WZ)
There’s a whole lot to be excited here, but some of the highlights include:
It doubles the standard deduction. A single filer’s deduction increases from $6,350 to $12,000. The deduction for Married and Joint Filers increases from $12,700 to $24,000.
The bill repeals the Obamacare tax on those without health insurance. Without the mandate, the Congressional Budget Office estimates 13 million people would drop their plans. The government would save $338 billion by not having to pay their subsidies.
The final bill increases the Child Tax Credit from $1,000 to $2,000. Credit is refundable up to $1,400. It increases the income level from $110,000 to $400,000 for married tax filers. (via: The Balance)
Even Democrats should be excited about this!