How will federal tax reform affect western Massachusetts?

Congress is hoping to have the finalized legislation ready for floor votes next week

NORTHAMPTON, Mass. (WWLP) – According to Northampton accountant Daniel Polacheck, a married couple making under $100,000 will have their exemptions taken away, but they’ll be given a higher standard deduction.

Here’s where the GOP bill stands, according to Polacheck: A married couple’s standard deduction would be $24,000; a single person’s, $12,000.

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The corporate tax rate would be reduced to 21 percent, from 35 percent. Opponents of the bill argue, the tax plan will benefit the wealthy.

“I think the rich will actually pay more tax, under this plan. Will they be better off? I don’t think so,” Polacheck told 22News. “The middle class? for a period of time.” According to Polacheck, that period would be the first six to eight years.

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The child credit would jump from $1,000 to $1,600. So parents can expect bigger refunds. The property tax deduction would be capped at $10,000.

Congressional leaders are hoping to have the finalized legislation ready for floor votes next week. President Trump hopes to sign it by Christmas.