Although the Republican tax bill is under fire from Democrats for snubbing the middle class, the 1,000-page document has plenty of tax breaks — if you qualify.
Tax experts are combing through the legislation to get a handle on how its new tax brackets and treatments of everything from bonds to charitable donations will impact their clients. Meanwhile, Republican leaders say the tax bill will put more money in the pockets of average Americans.
The bill will lower taxes for the middle-fifth of taxpayers by $800 per year on average, but people in the top 1 percent of the income distribution will enjoy an average cut of $55,000, the Institute on Taxation and Economic Policy estimates.
As in any major tax reform, meanwhile, some filers will receive new tax breaks thanks to lobbyists and politicians who had an eye out for specific groups. Other tax breaks were maintained in the final draft after earlier versions threatened to scrap them, such as the $7,500 tax credit for buyers of new electric cars.
Read on to learn about some of the new tax breaks in the Republican tax plan.
