The way Americans pay federal taxes may soon change. As MPB's Mark Rigsby reports, the House and Senate must go to conference committee to hammer out the details of a new tax plan before sending it to the President's desk.
It would be the biggest change to the federal tax system in 30 years. Mississippi Republican Senator Roger Wicker says, in an online video, he supports the overhaul.
"It's time to eliminate the burdens of an outdated tax system. It's time to create an environment to move American workers, families, and small businesses into the 21st century. It's time to seize opportunities for economic growth that benefit all Americans."
Plans passed by the House and the Senate double the standard deduction for individuals and couples, boost the child tax credit, and cut the corporate tax rate. Nicole Kaeding is an economist for the "Tax Foundation". The foundation says it's a non-partisan, non-profit in Washington D.C. Kaeding says most Mississippians would see a tax cut, and there would be economic growth.
"In general, most of your listeners should see increases in their wages, increases in their after-tax income, meaning their taxes are lower, and see more job opportunities as well."
However, Kaeding says there are parts of the plan that may not help, like giving special treatment to some small businesses called pass-throughs when they already receive tax breaks.
"From my view, it's one of the worst parts of these packages. We're giving these pass-throughs preferential treatment. Pass-throughs already receive a benefit compared to C corporations under current law, and we would be taking that even further."
Mississippi Democratic Congressman Bennie Thompson calls the Senate tax plan a scam that hurts middle and low income communities. He says the tax reform plan helps the rich in getting richer and poor in getting poorer.