For the last decade, American families have struggled with flat wages and a sluggish economy. The Finance Committee’s plan to overhaul the tax code was designed to provide tax relief and boost take-home pay for middle-income families. Under the Senate plan, a typical family of four earning the median family income of around $73,000 will see its taxes cut by nearly $1,500. A single parent with an income of $41,000 will see a 55 percent reduction in their tax bill. This means more money to invest in a child’s education, save for retirement, put toward a down payment on a home or just make ends meet.
Here’s a look at how families will gain under the Tax Cuts and Jobs Act.
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Lowers rates for low- and middle-income households, allowing them to keep more of their hard-earned paychecks.
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Creates an employer credit for paid family and medical leave, encouraging flexible work arrangements to help meet the needs of 21st century working men and women.
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Protects 401(k) and Individual Retirement Accounts to help Americans build their retirement nest eggs and save for retirement.
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Maintains home mortgage interest deduction up to $1 million, incentivizing homeownership and providing tax relief to current and aspiring homeowners.
Source: Ranking Member’s News
