What you need to know about a new tax bill
A new federal tax bill passed Thursday, which was expected to increase the federal deficit by $1.5 trillion over the next decade, will be signed into law by President Donald Trump and signed into effect as early as next week.
The Trump administration and House Republicans have said the new tax plan will increase revenue and provide relief for struggling families.
The bill was first reported by The Hill on Friday.
“This is the best deal for families,” Senate Minority Leader Chuck Schumer said in a statement.
“The bill will reduce the deficit by more than $1 trillion over 10 years, and is fully funded by closing loopholes and eliminating many tax breaks.”
House Speaker Paul Ryan, who will serve as the GOP’s budget chairman, said in an appearance on Fox News Friday morning that the tax bill “is the most pro-growth legislation I’ve seen in my life.”
House Budget Committee Chairman Diane Black, a Tennessee Republican, tweeted that Republicans have a $1trillion “burden to meet” for their plan to lower the national debt.
The new bill was the result of months of negotiations between House Republicans and Senate Democrats.
The two sides had a final deal in place by the end of January, but Republicans and Democrats had to negotiate over the bill’s details.
It has been widely reported that the House bill would increase taxes on households earning $500,000 and more, with a $10,000 exemption for the highest earners.
House Democrats are seeking to increase those exemptions to $2 million for households earning more than that.
The House Republican tax bill would also increase taxes for families making more than about $150,000 a year, with an additional $4,500 tax penalty.
Under the House Republican plan, married couples earning $200,000 or more would pay a $3,000 tax increase.
Couples making more would get a $4.50 increase.
The individual tax rate for married couples would be reduced to 39.6 percent from the current 39.8 percent.
For married couples, the bill would reduce the top individual income tax rate from 39.7 percent to 39 percent.
The GOP tax plan would also add $1,000 to the tax bracket for couples filing jointly.
A separate measure introduced by Rep. Steve Scalise, a Louisiana Republican, would repeal the estate tax, a levy on wealthy individuals that is levied on the value of a deceased individual’s estate.
The tax cut for families earning less than $50,000 is a major sticking point for Republicans.
In a statement, House Speaker Paul D. Ryan said that his plan would “make our country a stronger place.”
But some Republicans are arguing that the family tax cuts are more important than the estate and income tax cuts.
The top individual tax cut is $500 for couples, $2,000 for singles, and $10.50 for heads of households.
A $1 million exemption would allow couples making more to deduct the first $11,700 of their federal income tax bill from their tax bill.