The Tax Cuts and Jobs Act is all about helping people. Why? Because hardworking middle-class families deserve a break. For too long, our tax code has prioritized entrenched interests over ordinary Americans. It’s time for a change.
But tax reform isn’t easy. The defenders of the status quo are out in full force. But through the noise, there’s one number to keep in mind: $1,182. That’s how much of a tax cut the typical American household will receive from the Tax Cuts and Jobs Act. Specifically, under our plan, the average household of four earning $59,000 (the median household income), will receive a $1,182 tax cut. That’s the whole purpose of this plan. By nearly doubling the standard deduction, and expanding the child tax credit, middle-income families will finally get real tax relief.
Now, $1,182 may not seem like a lot to everyone, but as Speaker Ryan said last week: “That $1,182 more covers about a year’s worth of gas for your car. It covers your family’s phone bill for the year . . . That $1,182 more—it can help you pay down your debt faster. It can help you start and renovate your home faster. That $1,182 more for the average family—that will help you put away for college. It will help you save for retirement. It will help you save for a rainy day.”
Why is this number so important? Right now, 78 percent of American workers are living paycheck to paycheck. Many Americans are struggling to make ends meet as wages stay flat. But with our bill, middle-income families will get a tax cut and a pay raise, too. According to the Tax Foundation, the plan will result in 2.7 percent higher wages. See how much our plan will help in your state.
So give it some thought: What would you do with $1,182?