President Donald Trump signed the republican tax bill on Friday, before heading to Florida for Christmas. The bill is the largest tax overhaul in 30 years and passed through Congress without a single democrat vote in the House or Senate. The bill has been criticized for providing permanent tax cuts to large corporation while only providing temporary cuts to most middle to low-income Americans.
Before it passed Congress the tax bill polled low with the American people, with only about 40 percent in favor of the bill. Aside from concerns that the bill favors rich Americans and large corporations, it will also likely hit high-tax states the hardest, which generally means liberal-leaning costal states like Oregon. This is due to the new bill’s limits on SALT deductions, which allowed people to deduct their state and local taxes.
Since the tax cuts for middle and lower- income Americans expire in 2025, many Americans may also see tax increases as time goes on to pay for the new bill’s $1 trillion in tax cuts and the $1.5 trillion it adds to the national debt.
For now Americans could see the new cuts reflected on their taxes as early as this year since Trump signed the bill before the New Year.
On Friday Trump also signed in a continuing resolution that will keep the government funded through Jan. 19 while adding $4 billion to missile defense. A more permanent spending bill will be discussed when democrats and republicans return to D.C. after the Christmas break.