SALT LAKE CITY (ABC4 Utah) – The GOP effort to reform the tax system takes a step forward.
Thursday, the House passed its plan on a 227-205 vote. That includes a yes from all four Utah representatives.
Representative Chris Stewart says the Tax Cuts and Jobs Act is a win for Utah families.
“This is what it means for to your average family in Utah, it means about $1500 a year in money they get to keep, instead of sending it to Washington D.C.,” said Stewart, (R) Utah.
Stewart says the highlights of the bill include; cutting the corporate rate from 35% to 20%, doubling the standard deduction, protecting the child tax credit and simplifying the process, so taxpayers can use a postcard to file.
But, the individual reforms are not permanent.
“I wish we could make them permanent, but the reality is, is the way the tax rules and the legislative rules currently exist is you can only do this in a 10 year window,” Stewart said.
The plan also removes some deductions taxpayers are used to claiming. Utah Democrats say we’ll be paying for the cuts somewhere.
“This proposed tax reform even taxes college students who get grants to go to college, on those grants. Also, this seems to be going for the rich, and not for the middle class,” said former Utah Democratic Party Chair Peter Corroon.
Stewart insist it’s about the middle class, and says it’s the bottom line that matters.
“Taken in its entirety, it’s still, they are still going to pay less taxes,” said Stewart.
Stewart is confident the House and Senate can reconcile their opposing plans. In fact, he says it can be done in the first few weeks of December, 2017.
No Democrats voted in favor of the House bill, and 13 Republicans also broke from the party ranks.