As Senator Portman has discussed on the Senate floor, as well as in Ohio and national media, the Tax Cuts & Jobs Act will help boost the middle class, create more and better jobs, and raise wages. The legislation— currently under open consideration on the Senate floor—would save the typical Ohio family $2,375 annually on their tax bill and help middle-class Ohioans keep more of their paycheck.

There are three main ways the Tax Cuts & Jobs Act will help boost the middle class:

  • First, it doubles the standard deduction for families from about $12,000 to $24,000. Two-thirds of Ohioans use the standard deduction, and it is estimated that more than 90 percent of Ohioans would use the new doubled standard deduction. This doubled standard deduction would not only lessen their tax burden, but it also is a tremendous simplification of our tax code.
  • Second, it doubles the child tax credit. The American dream starts with the American family, and parents shouldn’t have to reconsider starting a family because of the financial burden that comes with it. This doubling of the child tax credit will help working families afford child care while also helping strengthen middle-class family budgets all across the country.
  • Third, this legislation lowers tax rates across the board for middle-class families. The independent Tax Foundation estimates that the tax cuts in this proposal will save an Ohio family at the median income level $2,375 a year. That is almost $2,400 a year in the pockets of working families to make that car payment, to pay for health care, or to buy groceries and school supplies.

In total, the reforms will make to the tax code will take approximately three million people off the tax rolls altogether, a significant boost to working families and the middle class.  While there is tax relief across the board, the biggest proportional tax cut goes to the middle class. According to the independent Tax Foundation:

  • A family with two kids earning about $50,000 a year would see a 36 percent reduction in their tax liability.
  • A similar family with two kids earning about $85,000 a year would see a 20 percent reduction in their tax liability.
  • And a family with two kids earning about $165,000 a year would see an eight percent reduction in their tax liability.

Lastly, every American, including the middle class, will benefit from the economic growth and job creation this bill will produce.  Yesterday, 137 of the United States’ leading economists wrote an open letter to Congress in support of the bill, stating: “Economic growth will accelerate if the Tax Cuts & Jobs Act passes, leading to more jobs, higher wages, and a better standard of living for the American people.”

Portman, who has held six tax reform roundtables in Ohio with local business leaders in recent months, has been vocal on the national stage calling for tax reform, including during recent interviews on CBS This Morning, Fox News, CNN, CNBC, Bloomberg TV, and NBC’s Meet The Press twice, as well as recently in an op-ed in the Cincinnati Enquirer.

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In total, the reforms will make to the tax code will take approximately three million people off the tax rolls altogether, a significant boost to working families and the middle class.  While there is tax relief across the board, the biggest proportional tax cut goes to the middle class. According to the independent Tax Foundation: