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#TaxScamBill: What You Need To Know

Last night around 2 a.m., Senate passed a MAJOR tax bill that gives huge tax breaks to the wealthiest people in the United States and folks are pissed! The cornerstone of the reform guarantees a permanent corporate rate cut, from 35 percent to 20 percent. It also pulls money from Medicaid and Medicare and screws middle class homeowners. To top off the swindle, the house didn’t even get ample enough time to read through the 500 page reform before voting on it.

“Not a single member of this chamber has read the bill,” Senate Minority Leader Chuck Schumer (D-N.Y.) said on the Senate floor before the bill passed. “It would be impossible. He called the Republican approach “a process and a product that no one can be proud of and everyone should be ashamed of.” He went on to warn that changes made to the bill “under the cover of darkness” would “stuff even more money into the pockets of the wealthy and the biggest corporations while raising taxes on millions in the middle class.”

Here are some seemingly positive parts of the Tax Bill, according to CNN money.

  1. Increases teacher deduction: Teachers who buy their own supplies for the classroom may deduct up to $250 today. The Senate bill doubles that amount to $500.
  2. Expands the child tax credit: The Senate GOP bill increases the child tax credit to $2,000 per child, up from $1,000 today, and above the $1,600 proposed in the House bill.
  3. Nearly doubles the standard deduction: The House and Senate bills nearly double the standard deduction. For single filers the Senate bill increases it to $12,000 from $6,350 currently; and it raises it for married couples filing jointly to $24,000 from $12,700.

Now for the negatives:

  1. Since the tax bill already nearly doubles standard deductions, it eliminates all individual state and local income tax deductions.
  2. The bill also repeals Obamacare’s individual mandate, which is projected to leave millions uninsured. (via NY Mag)
  3. Limits state and local income tax deductions to property taxes, with a cap of $10,000.

Like we said, the bill was 500 pages and folks are still discovering shady parts, dubbing it the #TaxScamBill. Here’s why. Hit the flip.

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