The House and Senate are both expected to sign the GOP tax plan Tuesday.
The plan is being touted by Republicans as the greatest plan since Reagan’s tax overhaul in the 1980s. However, Democrats call the plan a scam, stating it provides massive tax relief for the rich while leaving the middle class and lower skilled Americans with very little to nothing at all.
Under the plan, the 7 existing tax brackets will remain in place albeit at lower rates. The corporate rate will drop from the mid-30s down to 21%, individuals will be able to double some deductions, and the Obamacare mandate will be eliminated.
The GOP expects the plan will help spur business innovation and create new jobs.
Folks who live in high-tax areas like New York, New Jersey and California are losing some of the deductions they count on to offset the local and state taxes they pay, which are much higher than the national average.
Estimates are the plan will add $1.4 trillion to the national debt.
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