Vice President pushing for tax reform in Florida

GOP says plan would help middle class
Posted at 4:44 PM, Nov 02, 2017
and last updated 2017-11-02 17:25:39-04

Republicans are touting the first major overhaul of the American tax system in 30 years. 

"We are giving them a big beautiful Christmas present in the form of a tremendous tax cut," said the President Trump.

They are promising the tax cuts will help businesses, bolster job creation and the American middle class. 

"With this plan, the typical family of four will save $1,182 a year on their taxes," said Republican House Speaker Paul Ryan referring to a family earning $59,00 per year.  

The big changes including slashing the corporate tax rate from 35 percent to 20 percent.

Standard deductions for middle class families and individuals will almost double. 

The child tax credit will increase from $1,000 to $1,600 and establishes a new family credit. 

However, some Americans may end up paying more in taxes. 

For instance, mortgage interest deductions on future homes would be capped at $500,000.

State and local tax deductions would be capped at $10,000, which may hurt middle class families living in high tax areas. 

Trump's administration is pressuring Congress to pass the "Tax and Jobs Act" in two months. Although, some Republicans doubt the bill will be ready to sign by the holidays. 

"You're talking about before Thanksgiving, how you can debate, study and learn about something in two weeks and vote on it, which is going to impact maybe the next 20 to 30 years, is to me, we should spend a lot more time on it," said Long Island Rep. Peter King. 

RELATED: GOP leaders unveil key details in new tax plan

Democrats are critical too especially about getting rid of what's known as the "death tax."

"Repeal the estate tax, create a huge, new loophole for wealthy individuals in the form of reduction in the pass-through rate, and lowering the big rates on corporations and the wealthy -- this sure doesn't fit the bill of helping the middle class," said U.S. Senator Chuck Schumer from New York. 

The Republican plan would not change current tax rules for retirement accounts popular with the middle class including 401(k)s.