How will working families be affected by the tax plan? Lawmakers state their case
WASHINGTON (Sinclair Broadcast Group) Families all across the country are trying to figure out how the proposed tax reforms would affect them: Will they save, or suffer when it comes to paying taxes as parents?
A highly scrutinized piece of the tax reform plan is the child tax credit, designed to help parents keep their families afloat financially.
“Well there’s no doubt, the families tell us it’s expensive to raise kids…they need help in doing that," Rep. Kevin Brady, R, Texas told Sinclair Broadcast Group Wednesday.
While it's unclear what will be included in the final Senate version, proposals for boosting the tax credit range anywhere from the current $1,000 each to $1,600 - and even $2,000 a year per child.
However, lower-earning families might not get all of those credits, if they don't happen to owe the government federal income taxes.
“Those who earn more are actually gonna be the beneficiaries of that provision not those that are lower income earners who need I the help the most,” argued Rep. Linda Sanchez, D, Calif.
If this leaves some confused, they're not alone.
At a CNN Town Hall Tuesday night, a question from a single mother of four making $23,000 a year: “I take the lion's share of the financial responsibility, from driving a flatbed truck, running landscaping crews, anything I can do to bring money in.... How is this going to help other single moms if this goes through?"
Sen. Tim Scott, R, S.C. replied "when we did our analysis on the bill, a single mother with two kids making about $41,000 would see her taxes cut by about 75 percent."
Sen. Sanders, I, Vt. however, responded "I wish what Senator Scott said was reality. Unfortunately, it’s not... when these guys are finished with cutting social security, Medicare, Medicaid... it’s likely you and your kids will be in worse shape.”
A lot is yet to be determined, but if the Senate passes its version of the bill, the details and differences with the House version will be sorted out in committee while families - especially those struggling to make ends meet, are sure to seek clarity.