President Donald Trump will sign the tax bill before he leaves for his Christmas vacation. At the last minute, Trump allowed in pool reporters.
Trump will also sign the continuing resolution that will keep the government afloat through January 19.
From ABC News:
“Everything in here is really tremendous things for businesses, for people, for the middle class, for workers. And I consider this very much a bill for the middle class and a bill for jobs. Corporations are literally going wild over this,” Trump said.Trump indicated that he was going to wait until after the new year to sign the bill, but when he saw reports on the news speculating about the timing he “immediately called and said let’s get it ready.”
As I blogged before, the middle class will receive a large tax cut. Congress’s Joint Committee on Taxation said that those in the middle class “will get $61 billion in tax cuts in 2019.” From The Wall Street Journal:
That amounts to 23% of the tax cuts that go directly to individuals. By 2027, however, these households would get a net tax increase, because tax cuts are set to expire under the proposed law.The calculations are based on JCT estimates of cuts going to households that earn $20,000 to $100,000 a year in wages, dividends and benefits. Those households account for about half of all U.S. tax filers, with nearly a quarter making more and a quarter making less.
Those who make $500,000 or more, a group that makes up 1% of filers, will also receive a cuts worth $61 billion in the first year. By 2027, that cut could be $12 billion.
WSJ points out that that cut “includes income earned by pass-through businesses such as partnerships and S-corporations that pay taxes on individual returns.”
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