Republicans Release Their New Tax Cut. Here's What That Means for You.
On Thursday morning, Republicans in the House of Representatives revealed the Tax Cut & Jobs Act, a bill to both cut taxes and reform the tax code. A lot of questions are swirling about what this plan would mean for the average American family. Here are a few of the quick takeaways. 1) The standard deduction for married families would double. Essentially, Americans have a choice to either itemize each of their deductions or take what is known as the standard deduction. Currently, the maximum standard deduction is $6,300 for singles and $12,600 for married couples joint filing. The Tax Cut and Jobs Act would double that standard deduction, meaning that a married couple filing jointly would be able to deduct more than $25,000 from their taxable income. Given the fact that the median income in the United States is $52,ooo, that means the standard deduction alone will allow the average married couple to deduct half of their income right off the bat. 2) Child tax credits would