(22 Dec 2017) FOR TRACY SULLIVAN RUSS AND HER FAMILY, THERE'S A LOT TO LIKE IN THE REPUBLICAN TAX PLAN.
WITH THREE KIDS, THE RUSS FAMILY WILL GET A BIG BOOST FROM THE DOUBLING OF THE CHILD TAX CREDIT TO $2,000 PER KID. AND THEY'LL BENEFIT FROM THE LOWER BUSINESS TAX RATE.
SOUNDBITE (English) Tracy Sullivan Russ, small business owner
"As a small business family, we are going to literally have more money in our pocket that we are going to be able to invest in our company. We are going to be able to put more food on our table."
CONGRESS APPROVED THE TAX OVERHAUL THIS WEEK - DESPITE FIERCE OPPOSITION FROM DEMOCRATS WHO SAY IT MAINLY HELPS CORPORATIONS AND THE WEALTHY WHILE INCREASING THE FEDERAL DEFICIT.
SOUNDBITE (English) Rep. Nancy Pelosi, House Minority Leader
"Because we have on the floor, probably the worst bill in recent times."
BESIDES REDUCING THE CORPORATE TAX RATE, THE LEGISLATION LOWERS INDIVIDUAL TAX RATES ACROSS ALL INCOME LEVELS, SO MOST TAXPAYERS WILL PAY LESS.
THE BILL ROUGHLY DOUBLES THE STANDARD DEDUCTION TO $12,000 FOR INDIVIDUALS AND $24,000 FOR COUPLES. BUT IT ELIMINATES PERSONAL EXEMPTIONS - AND CAPS OR SCRAPS MANY POPULAR DEDUCTIONS THAT SHIELD INCOME FROM TAX.
SOUNDBITE (English), Gregory Winters, tax attorney, Burke, Warren, MacKay & Serritella
"Individuals living in high-tax states such as New York and California will see the biggest changes to their itemized deductions where they will only be able to deduct state income and real estate taxes up to a combined total of ten thousand dollars."
THE LEGISLATION IMPOSES NEW LIMITS ON THE MORTGAGE INTEREST DEDUCTION, WHICH COULD WEAKEN THE INCENTIVE TO BUY A HOME IN PRICEY HOUSING MARKETS SUCH AS CALIFORNIA.
BUT REALTOR WILL DOERLICH DOESN'T THINK IT WILL DAMPEN DEMAND IN THIS SAN FRANCISCO BAY AREA SUBURB, WHERE HOMES SELL FOR WELL OVER A MILLION DOLLARS.
SOUNDBITE (English) William Doerlich, realtor
"The housing market itself is still strong, the job market is still strong, interest rates are still low and demand outstrips supply by a large percentage."
THE TAX BILL'S BACKERS HOPE STRONG ECONOMIC GROWTH WILL HELP WIN OVER VOTERS, BUT ...
SOUNDBITE (English), Gregory Winters, tax attorney, Burke, Warren, MacKay & Serritella
"If there is not significant growth in the economy, then this legislation would increase the debt and the deficit going forward."
A DEBATE THAT WILL PLAY OUT IN COMING YEARS AS VOTERS SEE HOW THE TAX OVERHAUL AFFECTS THE ECONOMY -- AND THEIR WALLETS.
TERRY CHEA, ASSOCIATED PRESS
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