House Panel Passes GOP Tax Plan to Boost Standard Deduction

Ed Slott of Ed Slott & Co., told ThinkAdvisor Wednesday in an interview that the GOP plan includes “common sense” provisions that “would help taxpayers.” For instance, the boost in the standard deduction would help a “large swath” of taxpayers, Slott said, adding that “more than 90% of taxpayers take the standard deduction anyway.”

The series of bills now moves to the full House.

Rep. Richard Neal of Massachusetts, the top Democrat on the committee, called the GOP tax package the Tax Scam 2.0, saying it “focuses on restoring corporate giveaways to the wealthy and well-connected before restoring the tax credits that cut child poverty in half, and in this provision [increasing the standard deduction], we see that even when Republicans try to cut taxes for families, they miss those who need it most.”

Added Neal: “The poorest fifth of Americans would receive just 2% of the benefits of this provision, and on average, that means a tax break of just $30 next year. As the only change to the individual side of the tax code, I must admit it feels like an afterthought. Why ignore one of the most important policies for working families if cutting taxes for working families is the goal?”