Nicole Hager, 202-224-4515
ICYMI: Tax Reform Gave Typical American Family a 58 Percent Tax Cut
A Family of Four Earning Median Family Income Will See a Tax Cut of More Than $2,000 in 2018
One of Chairman Hatch’s chief goals during last year’s tax reform debate was to provide relief to hard-working middle-class families, a goal he brought to fruition. In fact, a family of four earning $73,000, the median family income, will see a tax cut of more than $2,000. Their tax bill will fall from what they would have paid in 2018, around $3,557.50, to paying $1,499 instead—a reduction of $2,058. That’s 58 percent.
While Democrats might call a 58 percent tax reductions, “crumbs,” $2,000 means more money to put toward an education, save for retirement or use for a well-deserved vacation.
Where did this middle-class tax cut come from? Included in the Tax Cuts and Jobs Act were provisions that:
Lowered tax rates for the middle-class
Roughly doubled the standard deduction from $6,500 and $13,000 under the old tax code to $12,000 and $24,000 for individuals and married couples, respectively
Expanded the child tax credit from $1,000 to $2,000.
Hatch welcomes efforts to build on tax reform’s success by continuing to deliver benefits to middle-class Americans and will work with Finance Committee members and the administration to determine how to best achieve that shared goal.
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