Gina Jochimsen

Friday night in Washington D.C. was a historic one. The senate passed the largest tax reform bill since the Reagan Era. I personally was very happy to see this pass. Of course, there were a few things I would have preferred to see in the bill that were not included such as cutting spending on outdated programs. Included in the 479-page tax bill, simply put, income taxes are slashed on all brackets including a corporate tax from 35% to 20% along with some other sweeping reforms. The standard deduction is doubled from $6,350 for a single and $12,700 if married to $12,400 to $24,800. The standard deduction is the amount that non-itemizers can take from their income before taxes. Also, the child tax credit is increased from $1,000 to $2,000 which is pleasing to see. The availability of the text came out late in the night and was voted on before American’s woke which is reminiscent of a similar scenario that took place in 2010 for the Obamacare roll out. Which speaking of, a repeal of the individual mandate was included in the bill. This means that Americans cannot be penalized and fined for not registering for the government run healthcare. Many on the Left have brought up several talking points when it comes to different pieces of the bill. One main talking point is that the tax bill will raise taxes on the middle class and cut them for the wealthy while adding 1.4 trillion to the national debt. In a Fox News opinion piece, author Alfredo Ortiz debunks the talking points mentioning that “The tax bill would provide significant relief for the middle class by doing the following: doubling the income threshold under which families pay no taxes at all to $24,000; double the child tax credit to $2,000; and eliminating the 15 percent tax rate in favor of expanded 12 percent rate.” He also says, “The bill offers a 20 percent small business tax deduction for all small businesses earning less than $500,000 a year. This means wages will be raised and the creation of more jobs. Finally, he mentions, “People respond to incentives. With more money in their pockets and in their communities, consumers, businesses and investors will spend more, creating economic growth that will more than pay for the 1.4 trillion in lost revenues” It’ll be interesting to see this overhaul signed into law and the watch the outcomes roll in, in time.