The House GOP tax reform plan announced Thursday would consolidate the current seven tax brackets into four and would double the standard deduction, giving an average family of four nearly 12-hundred-dollars more income per year. But Jan Moller with the Louisiana Budget Project says the one-and-a-half-trillion-dollar cuts in the package over ten years will affect services many rely on.
"What they are going to see is deep deep cuts in a whole range of things that the federal government does that is likely to have to be cut in the future," Moller said.
Baton Rouge Congressman Garret Graves says when tax cuts were approved in the past, it caused more money to be circulated in the economy, which helped to raise incomes and protect federal programs.
"You actually saw an increase in revenue to the U.S. government because you saw incentivized economic activity, improving the competitiveness of the U.S. economy."
Moller says based on his knowledge of the bill not everyone will see significant tax cuts as promised.
"Folks at the very top of the income pyramid are going to see a massive tax cut from this. Folks in the middle and bottom are going to see little or no relief."
Graves says if this proposed tax code doesn’t go into effect, American corporations will continue to look overseas, jeopardizing the financial security of many in the long run.
"We're going to continue that slide because of the lack of competitiveness of our tax code. Lowering rates, making it simpler, making it fair, this is a big step forward and a big win for American families."
Congressman Clay Higgins from St. Landry Parish says this is major reform which is pro citizen and pro economic growth.
"Every American is going to see a greatly simplified tax file, standard deductions are virtually doubled," Higgins said.