In the middle of the night and after a few hold ups—the new Tax Bill approved by the House and Senate.

There was a hold up Tuesday afternoon after the House passed the bill and realized it didn’t comply with one of the Senate’s rules. So, with the Senate’s approval, the House will have to go back and vote this morning (Wednesday).

Lets be real though, what does it really mean for us? When will we actually see an effect?

  • The bill will also lower tax rates for individuals and families temporarily
  • increasing the standard deduction and the child tax credit
  • But because the bill also kills or limits key tax deductions — most notably rolling back the ability of individuals to subtract their state and local taxes from their federal tax bill.
  • In a study released on Monday, the Tax Policy Center, a nonpartisan think tank often cited by Democrats, concluded that the top 1% of taxpayers, those making more than $732,800, would get 20.5% of all the benefits in the tax bill next year.
  • The study also found that for people in the middle of the national income scale — making between $48,600 and $86,100 — 91% will see a tax cut averaging $1,090, while 7% will see a tax increase averaging $910 next year.