- The Senate is aiming for a final vote on their gigantic Republican tax reform bill on Friday afternoon.
- They appear to have enough votes to pass.
- We put together a guide comparing how your taxes could change based on what the Senate bill and the House bill contains.
The final vote on the massive tax bill by the Senate Republicans might be coming up on Friday.
Such a vote would come just three weeks after the bill, the Tax Cuts and Jobs Act (TCJA), was introduced.
Republicans seem confident that they have the necessary 50 votes to pass the TCJA. Senate Majority Leader Mitch McConnell told reporters at 12:00 p.m. ET that "we have the votes." (Stay up to date with Business Insider's live blog here.)
But there's been a lot of confusion among Americans about what's in the Senate's version of the bill and what's in the House's version of the bill — and how that would differ from the current law.
We put together a simple guide on how things might shift for you if either of these bills becomes law:
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Income taxes and standard deductions for single filers
Under the House's plan, there would be four federal income-tax brackets rather than the seven we have today. The brackets proposed are 12%, 25%, 35%, and 39.6%.
The Senate's version would keep seven brackets but at slightly lower rates and adjusted income ranges. The brackets proposed are 10%, 12%, 22%, 24%, 32%, 35%, and 38.5%.
About 70% of Americans claim the standard deduction when filing their taxes, and their paychecks will almost certainly increase — albeit slightly — if tax reform passes. In 2017, the standard deduction for a single taxpayer is $6,350, plus one personal exemption of $4,050.
Both plans would combine those into one larger standard deduction. For single filers under the House plan: $12,200, and for single filers under the Senate plan: $12,000.
Income taxes and standard deductions for joint filers
About 70% of Americans claim the standard deduction when filing their taxes, and their paychecks will almost certainly increase — albeit slightly — if tax reform passes. In 2017, the standard deduction for a married taxpayer who files jointly is $12,700, plus one personal exemption of $4,050 for each spouse and child.
Both plans would combine those into one larger standard deduction. For joint filers under the House plan: $24,400, and for single filers under the Senate plan: $24,000.
Child tax credit
| Current Law | House GOP Plan | Senate Plan |
Provides $1,000 tax credit per child for families making less than $110,000 ($75,000 for single). | Increases the credit to $1,600 per child. Also adds a $300 credit per adult, which will expire in 2023. | Increases the credit to $2,000 per child. |
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