The people below have two definite things in common: They are all hard-working Americans, and they all will receive more take-home pay thanks to the Tax Cuts and Jobs Act—our bold legislation to overhaul America’s tax code for the first time in 31 years.
The non-partisan Tax Foundation ran the numbers. And verdict is in: American people and families will experience a tax cut. Here’s the breakdown:
“Our results indicate a reduction in tax liability for every scenario we modeled, with some of the largest cuts accruing to moderate-income families with children and fixed-income retirees. . . All of our sample filers receive a tax cut, but the size of that reduction varies. The significantly higher standard deduction, combined with a more generous (and more broadly available) child tax credit, drives the reductions in tax liability for low- and middle-income filers.”
In other words, everyone benefits, but moderate-income families and retirees do even more. That’s what we call policies that benefit the middle class.
Take their example of a married couple making $85,000 with two children:
“Our third household (Kavya and Nick) is a single-earner married couple with two kids, earning $85,000. We assume tax-deferred retirement savings of $5,500, and that the couple takes the standard deduction. They also benefit from the expanded child tax credits, and see an overall tax savings of 10 percent, from $10,614 to $9,542. This family’s after-tax income increases by 1.4 percent.”
Bottom line? Real people will see real results. That’s the purpose of our plan—more jobs, fairer taxes, and bigger paychecks for all Americans. Click here for the breakdown of the relief coming to these families thanks to the Tax Cuts and Jobs Act.