(WWLP) – It’s a national story with profound effects right here in western Massachusetts.
Congressional Republicans have reached an agreement on a tax reform bill, without the help of democrats, that would add $1.5 trillion to the national debt.
Congressman Richard Neal talked to 22News about the process the bill went through, “This has really been done without any democratic input. There have been no public hearings and there have been no witness testimonies.”
Supporters say the GOP’s plan will improve the economy, create jobs and bring tax relief to middle class families. The bill also eliminates or caps some popular deductions.
A married couple making under $100,000 will have their exemptions taken away, but they’ll be given a higher standard deduction.
Ray Maagero, of Liberty Tax Service in West Springfield told 22News, “tThey also have the complicated side of the tax code, that involves, deductions that were previously itemized. Real estate taxes, state and local income taxes, medical expenses, those are changing too, so each person’s situation is going to be different.”
Don Hunter, a West Springfield resident added, “Those deductions do help us, plan out our finances for the coming year. We try to calculate our taxes exactly, so we don’t have as big as a refund, at the end, but those deductions do help us keep our tax number low.”
A married couple’s standard deduction would be $24,000. A single person $12,000, and the child tax credit is now $1,400, up from $1000.
Deduction for property tax and State withholding taxes, would be capped at $10,000 dollars.
Individuals tax cuts expire in 2025, while corporate tax cuts are permanent.
A final vote is expected this week, and the GOP hopes to have the bill passed and signed by President Trump by Christmas.