Will this still be an early Christmas Gift for the Taxpayers?
Trump may wait until January to sign the tax bill into law. The reason this may happen is because once this tax bill goes into law it will add to the deficit and when that happens it will trigger a 2010 law known as “PAYGO,” or “pay-as-you-go.” Once this happens the budget law will require spending cuts to Medicare and other programs. The reductions would cut spending on Medicare by $25 billion in 2018, according to the Congressional Budget Office.
If Trump signs the tax bill into law in January it would likely defer those spending cuts until 2019, giving Congress almost a year to come up with a solution.
So what will the Taxpayers get out of the tax saving plan. Well, let’s see!
In 2018, taxpayers earning less than $25,000 would receive an average tax cut of $60, the nonpartisan Tax Policy Center found. Those earning between $49,000 and $86,000 would get an average cut of about $900; those earning between $308,000 and $733,000 would receive an average cut of $13,500; and those earning more than $733,000 would receive an average cut of $51,000.
And in 2025 these tax cuts will expire for individuals but the corporations tax cuts will remain permanent.
Happy Holidays Everyone!!!!