202-224-4515, Katie Niederee & Julia Lawless
The Senate Tax Proposal Delivers Benefits Directly to the Middle Class
Under Finance Committee Plan, a Typical Family of Four Will See Tax Bill Drop by Nearly 60 percent
The Finance Committee tax overhaul delivers benefits directly to the working and middle class through doubling the standard deduction and the child tax credit, as well as lowering rates across the board. Take a look at the real world impact of the Senate plan:
Family of four earning $73,000
A family of four with income of around $73,000 (median family income) will see a tax cut of nearly $2,200.
Their tax bill will fall from what they pay today, around $3,683, to paying $1,499 next year—a reduction of $2,184.
This represents a reduction in their tax bill of nearly 60 percent.
Single parent with one child earning $41,000
A single parent with one child earning $41,000 will see a tax cut of nearly $1,400.
Their tax bill will fall from what they are paying today, around $1,865, to paying $488 next year—a reduction of $1,377.
This represents a reduction in their tax bill of nearly 75 percent, meaning that their tax bill next year will be just over one quarter of what it is today.
Married small business owners with income of $100,000
A couple earning $100,000, with $60,000 from wages, $25,000 in compensation from their non-corporate business, and $15,000 of business income, will see a tax cut of more than $2,850.
Their tax bill will fall from what they pay today, around $11,280, to paying around $8,425 next year—a reduction of $2,855.
This represents a reduction in their tax bill of more than 25 percent.
Since Hatch became chairman in 2011, the committee has held more than 70 hearings focused on reforming the nation’s broken tax code and has made numerous bipartisan efforts, including drafting option papers and forming working groups, to find consensus on tax reform. For more information about the Finance Committee’s history in the tax space, click here.
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