April 17 (UPI) — The White House on Tuesday touted its tax reform efforts, which President Donald Trump says will help taxpayers save more money in the future.
Highlighting the Tax Cuts and Jobs Act Trump signed into law last year, the White House called Tuesday the “last ‘Tax Day’ under the old system.”
“When we began our push for tax cuts, I promised that our bill would result in more jobs, higher wages, and tremendous relief for middle-class families, and that is exactly what we have delivered,” Trump said in a statement.
By April 15, 2019, taxpayers will see the difference in their tax return, Trump said.
The White House predicts about two-thirds of all households will see lower marginal income tax rates in 2018. It also expects taxes to decline across all income groups.
As a result of the tax reform, taxpayers will have lower individual tax rates and nearly double the standard deduction, from $6,500 to $12,000 for individuals and from $13,000 to $24,000 for married couples, according to the statement.
Other changes include a new $500 tax credit for dependents ages 17 or older, an expanded medical expense deduction, elimination of the mandate penalty tax and an expanded use of 529 education savings accounts.
According to the nonpartisan Urban Institute-Brookings Institution Tax Policy Center, the tax cuts will be short-lived and despite 80 percent of Americans seeing a tax cut this year, 53 percent will pay higher taxes in 2027, a number that increases to 70 percent for those making between $54,700 and $93,200.
Tax forms will be simplified under the new plan because of the increased standard deduction, Trump said.
“Americans deserve a tax code that enables them to file their taxes without an army of lawyers and accountants and the Tax Cuts and Jobs Act will help do just that,” according to the statement. “Dozens of special interest tax breaks and loopholes have been eliminated, which will raise $4 trillion in revenue to help offset tax cuts for American workers and families.”
Republicans, hoping the massive tax overhaul secures seats in the midterm election, have run nearly 17,800 ads this year that tout tax reform, resulting in Democrats fighting back with commercials that slam the tax cuts as helping the wealthy, and endangering the future of Medicare and Social Security.