The U.S. House of Representatives on Thursday passed the Tax Cuts and Jobs Act, a sweeping bill that cuts the corporate tax rate from 35 percent to 20 percent, eliminates the estate tax in 2024 and drops many personal deductions, among other things. Rep Vern Buchanan, R-Longboat Key, voted in favor of the bill, which passed 227-205, with no Democratic support. According to an analysis of the bill by Washington D.C.'s Tax Policy Center, the average tax cut for Americans in 2018 would be almost $1,200. Americans in the bottom 20 percent of income would see their federal taxes decrease by .4 percent, while those in the top 20 percent income bracket would have their taxes decrease by 1.4 percent. The top income bracket would receive 56.7 percent of the overall cut, while the middle bracket would receive 13.6 percent of the benefit. By 2027, taxpayers in the bottom 40 percent of earners would see little change in their taxes, while the top bracket would receive 73.6 percent of the benefits, with 47.1 percent going to the top 1 percent of earners. The House plan is estimated to cost over $1.4 trillion over the next 10 years. The U.S. Senate is currently working on its own tax cut plan.
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