Officials Explain How Senate's Tax Bill Affects Nevadans - KTVN Channel 2 - Reno Tahoe Sparks News, Weather, Video

Officials Explain How Senate's Tax Bill Affects Nevadans

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Courtesy: MGN Courtesy: MGN

The Senate passed a major "tax reform bill" on Saturday morning, the likes of which haven’t been seen since the Reagan era. This tax bill barely made it through. Unlike the 1986 tax bill, which passed with bipartisan support, this bill had zero votes from the Democrats, and only passed by one vote.

The GOP Senate bill decreases the corporate tax rate from 35% down to 20%, which is one of highest in any industrialized country.

But professor of economics at UNR Dr. Mehmet Tosun says most corporations don't actually pay that much.

"Effectively the corporations are not paying that high of a tax. They are subject to a variety of tax breaks that the effective tax rate is probably something in the 20's range," said Dr. Tosun.

Dr. Tosun says that by further decreasing the corporate tax rate, corporations can effectively reduce their taxes even lower. But what about the tax rate for you and me? Middle and low income households will see a slight decrease in taxes for a few years, but unlike the corporate tax rate, that cut is only temporary. The Tax Policy Center found that by 2027 over half of the benefits of the tax bill will only benefit the top 1%.

"The higher income is going to get a much bigger tax cut, the burden on the higher income will be significantly less than the ones for the middle income and the lower income," said Dr. Tosun.

Nevada Senator Dean Heller called the passing of the bill a "huge win" saying "this is an incredible victory for Nevada and for families and business across the nation. I'm meeting with Nevadan’s from across the state and then heading back to make sure our tax reform bill gets to president trump's desk before Christmas."

Democratic Senator Catherine Cortez Masto released her own statement morning saying, "Senate Republicans have passed a bill they drafted in secret that harms Nevadan’s. Why? To give an early Christmas gift to the top one-percent and big corporations. Future generations will be paying for their  $1.5 trillion deficit hike for decades to come."

One more thing to note that was in the Senate bill is the removal of the individual mandate for the Affordable Care Act, which was not in the House passed tax bill. These two bills will have to be reconciled and agreed upon before being placed on the president’s desk for signature into law.

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