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Money News

What the Biggest Changes to Taxes in a Generation Mean for You

December 20, 2017

  • The bill was signed into law by the president on December 22
  • It’s the most significant rewrite of the U.S. tax code in more than 30 years
  • It repeals the individual mandate of the Affordable Care Act
3 min read

Update: President Trump signed the tax bill into law on Friday, December 22, 2017.

The Senate passed the most sweeping changes to the U.S. tax code in a generation, voting in favor of a Republican plan early on Wednesday.

The bill, which passed by a vote of 51 to 48, is the first major legislative victory for Republicans and President Donald Trump in 2017. The president is expected to sign the bill into law by Christmas.

The plan revises nearly all parts of the tax code, according to analysis, but it provides the most significant tax cuts for business and the wealthy, while the middle class and poorer tax payers will see more modest tax savings. The average taxpayer is expected to save $1,600 in 2018, according to the Tax Policy Center.

The tax plan eliminates something called the individual mandate by 2019

Just as significantly, the plan will affect healthcare plans, as it junks a critical revenue stream for the Affordable Care Act. It is also expected to add up to $3.5 trillion to the federal deficit.

But how will it all affect you?

Here are the highlights of the tax plan*:

Changes for taxpayers

Source: Wall Street Journal

Handouts for the very rich

Changes affecting healthcare costs and expenses

Businesses get a big break

A popular student deduction stays

By Jeremy Quittner
Jeremy Quittner is the senior writer for Stash.

*Sources, New York Times, December 18, 2017; Bloomberg, December 15, 2017; Wall Street Journal, December 15, 2017

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