Republicans release comprehensive tax overhaul plan

Republicans release comprehensive tax overhaul plan

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LUBBOCK, Texas -

Congressional Republicans released their long awaited tax reform plan Thursday.

President Trump's plan intends to shrink the number of tax brackets to four; 12 percent, 25 percent, and 35 percent with the top rate staying the same at 39.6 for those making more than a $1 million. Single filers making $12,000 and less per year along with couples making less than $24,000 would pay no income tax.

"The lowest bracket have the largest tax cuts so the lower income and middle income folks are going to be the ones who are the biggest winners so they'll be able to keep more of their hard earned money," said Lubbock Rep. Jodey Arrington.

The plan also would nearly double standard deductions. Middle class couples would go from $12,700 to $24,000. Filing individually goes up to $12,000.

The proposal would also expand the child tax credit from $1,000 to $1,600 plus another $300 credit for each parent and non-child dependent such as family members.

"With this plan the typical family of four will save $1,182 a year on their taxes," said Speaker Paul Ryan. 

The plan would lower the corporate tax rate to a maximum of 20 percent with the intention of leveling the playing field on the global level.

It eliminates the medical expense deduction. Republicans expect those cost to be made whole by the overall lowering the tax rates.

401(k)s are left untouched. 

Despite the Republican hype it does come with a cost. The proposal would add nearly $1.5 million to the nations debt over the next decade. 

The president said he expects the bill on his desk by Thanksgiving.

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