How Tax Reform Helps Middle-Class Americans Throughout Their Lives
Our unified framework for tax reform is focused on improving the lives of all Americans – especially the middle-class – by delivering more jobs, fairer taxes, and bigger paychecks. Here’s how our framework will help middle-class Americans and their families throughout their lives:
Starting a Career
- Unleashing job creation: The lowest tax rates in modern history for American businesses of all sizes will help them grow our economy and create more job opportunities for hardworking Americans throughout the nation.
- 0/12%, 25%, 35%: A simpler, fairer tax code with just three tax brackets instead of seven will better reward Americans’ hard work and allow them to keep more of their paychecks.And this simpler, fairer, and flatter tax code will be especially helpful for low- and middle-income Americans. The current 15% bracket will become 12%, and the existing 10% bracket becomes zero – providing meaningful tax relief for all those who are working hard to get ahead.
- Doubling the standard deduction: Protects more of every paycheck from taxes and helps make the tax code so straightforward that 9 out of 10 Americans will be able to file on a form as simple as a postcard.
Buying a Home
- Protecting a tax benefit for home mortgage interest: Ensures that middle-class Americans will have access to tax relief to help them achieve the American dream of homeownership.
Raising a Family & Putting Kids Through Higher Education
- Enhanced Child Tax Credit: One simpler and larger tax benefit to help middle-class parents with the cost of raising children.
- Maintaining higher education tax benefits: Helps families save for and better afford tuition and education expenses.
Starting a New Business
- 25%: Main Street job creators will no longer be taxed at individual rates as high as 40%. Instead, small businesses will be taxed at no more than 25%, allowing Americans to keep more of their money to grow a new start-up, support their families, and create jobs.
Giving Back
- Preserving a tax benefit for charitable contributions: Encourages and rewards Americans who give back to their local church, charity, or community organization.
- Retaining the low-income housing tax credit: Helps promote business investment in affordable housing so families, individuals, and seniors can find a safe and comfortable place to call home.
Preparing for Retirement
- Rewarding saving and investment: Provides tax relief to help more middle-class families plan, save, and invest for a more comfortable and secure retirement.
For Your Children & Grandchildren
- Repealing the Death Tax: Americans will no longer face double – or even triple – taxation on family assets or family-owned business when they pass down their life’s work to the next generation.
CLICK HERE for more information on how our unified framework helps Americans of all walks of life.