How the GOP tax bill affects the middle class
The Trump administration is proposing a $1.5 trillion tax cut that would lower rates for corporations and individuals while expanding the base to include the lowest-income households.
The measure is the centerpiece of President Donald Trump’s tax reform push, which includes a doubling of the standard deduction and the elimination of the estate tax.
But the measure also would provide a $2,000 tax credit for families who earn less than $250,000 a year.
The GOP bill includes a $5,000 credit for parents with children, a $3,000 income-based tax credit and a $10,000 child tax credit, which Trump has said will help reduce the burden on families.
It also includes a provision that allows taxpayers to deduct the cost of medical care, as well as other expenses, such as mortgage interest, and other payments.
Democrats have vowed to block the measure in a court challenge, and the White House said it is looking to revise the bill to include a provision to allow some tax cuts to expire.
On Friday, Trump met with a group of business leaders in the Oval Office and announced that the Republican plan would give them the same tax breaks as high-income earners, and would also give them a tax credit of $2.5 million.
This article is from the archive of our partner The Wire.