President Donald Trump wants to cut the corporate tax rate to spur the economy. Last week vice president Mike Pence swung through Central Florida to promote the GOP’s 429 page tax overhaul.
He said the time has come to cut taxes across the board. But what’s in the fine print of this plan and what does it mean for the middle class, for working families, and for high earners?
Joel Garris, president and CEO of Nelson Financial Planning, Aubrey Jewett, professor of political science at the University of Central Florida, and Paul Roldan, vice chair of the Hispanic Chamber of Commerce of Metro Orlando joined Intersection to explain the new tax code.
Jewett said changing the tax code is difficult because it affects everyone in the country and the country's revenue.
"That makes it a challenge," said Jewett.
"This time around once again we will see an argument over cutting taxes versus how much more debt this will create in the future versus how much new economic activity this will create so will that will be able to offset the potential debt?" he said.
Garris said with the new tax plan, someone who takes advantage of itemized deductions may see their taxes go up rather than decline.
"What the higher standard deduction is going to do is it's gonna force you to just take the standard deduction and give up those itemized deductions," he said.
"So the more that you've got on itemized deductions the greater you're gonna be forced into that standard deduction and potentially see your taxes go up."
Roldan said he doesn't think a new tax code will be signed into law in the next month but there is pressure to get some legislation passed.
"The biggest, I think, impatience here is the political ramifications of not getting anything done so I think that's the biggest push," Roldan said.
"How much pressure is felt there with the recent elections that just happened obviously heightened it."