SPOKANE, Wash. - President Donald Trump tweeted Saturday that the passing of the U.S. Senate's version of the tax reform bill puts us "one step closer to delivering massive tax cuts for working families across America." House Minority leader Nancy Pelosi said Senate republicans had "sealed their betrayal of the American middle class" by passing the legislation.
Putting politics aside, how does the proposed law effect the average American family? The answer to that relies on a myriad of factors that we don't know the answer to yet. The Senate and Houses' versions of the bill had several differences. On Monday, negotiators from both chambers met to come up with one cohesive bill.
From the Senate's version, Spokane CPA Mike Patrick says most Americans will not see a big check in the mail.
“Most Americans, especially in Spokane, are going to see little or no affect. The tax rate in future years could go up for those people, but the people who are going to get the major cost savings are going to be the wealthy,” he explained.
A lot of websites are offering the chance to compute how your taxes would be impacted by the GOP bill. The easiest one KXLY 4 News found was on the Washington Post's website.
The calculator allows you to put in the total amount your household makes per year. In Spokane, the average annual income is $45, 676. Based on the Senate plan, an average family would save $330 on a 2019 tax return.
Yet, that number could be different based on the ages of your children.
“Let's say that we both have the same income, exact same income, and we both have two kids,” said Patrick. “However, your kids are 10 and 12 and mine are 18 and 20. In that scenario my taxes would be $5,000 higher in this new plan because i won't get the educational tax credit for my kids going to school.”
Other ways taxes might go up for some include if you itemize your deductions, as almost all deductions would go away, if you live in a state with higher taxes or are single as families with children are given bigger tax breaks in GOP version of the bill.
If negotiators from the House and Senate can come up with a version both chambers can agree on, it will be sent to the President who will sign it in to law. President Trump said in a tweet he's confident that will happen by Christmas.