Congress passes tax overhaul

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LINCOLN, Neb. -- It's unclear when exactly President Donald Trump will sign the new tax overhaul plan, but GOP lawmakers are celebrating. It passed both the Senate and House this week despite not earning a single vote from a democrat.

Credit: MGN

10/11 spoke with a local tax lawyer to break down what this new tax plan means for Nebraskans. What the biggest changes will be and who will benefit the most.

Congress's new tax plan is a victory for the GOP and President Trump but also large corporations.

"Right off the top there's a drastic tax cut for corporations. From the top tax rate of 35 percent under current law, down to 21 percent," said Max Rodenburg, he's a tax attorney with Rembolt Ludtke LLP.

For individuals there will still be seven tax brackets with slightly smaller tax rates for each bracket.

"Projections are showing that individuals will likely receive a modest tax break depending on their level of income, at least initially," said Rodenburg

This is largely due to the standard deduction rate which will be doubled in the new tax plan.

"And the standard deduction is a flat amount that people can lop right off their income" said Rodenburg.

For a married couple with a household income of $100,000 they used to have a deduction rate of $12,700. Under the new bill that rate nearly doubles, to $24,000, meaning the couple would only pay taxes on $76,000.

"Something this big, something this generational, something this profound... could not have been done without exquisite presidential leadership." said House Speaker (R) Paul Ryan.

GOP lawmakers celebrated the plan, but democrats showed zero support.

"I guess if you're a billionaire like President Trump, or a wealthy campaign contributor, you do have a lot to celebrate." said Vermont Senator Bernie Sanders.

Some of the other big changes are a tax reduction for some small business owners, and an increase in the child tax credit.

However, the celebration maybe short lived because now the House is scrambling to reach a funding agreement by Friday. If they don't, government will shut down.