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  • The House and Senate tax goes differ on some major points.

  • What does that mean for you?

  • Chief Business Correspondent, Christine Romans, is here to fill us in.

  • - What do you see, Christine? - Good morning, well, look.

  • What Congress decides will be felt by tax payers in every corner of the economy.

  • A lot depends on the fate of the Obamacare mandate, and there are other wrinkles to get through here.

  • The first and foremost, the House has four income tax brackets.

  • one, two, three, four.

  • The Senate has 7, and lowers most rates including that rate for the top.

  • The Senate keeps some popular tax breaks that the house kills.

  • We're talking about mortgage interest deduction, medical expenses, and student loans.

  • Grad students have been really worried here about their tax bill.

  • They fair better under the Senate plan than the House.

  • Big permanent corporate tax cuts are the cornerstone of both of these versions.

  • Make no mistake, with no guarantee it will add to jobs or raise wages.

  • Let's zero in on the Senate bills.

  • A score from Congress itself finds winners and losers in every tax bracket, and the losers grow over time.

  • For example, for Americans making the median income,

  • 81% get a tax cut in 2019, but, by the year 2027, only 14% still have a tax cut.

  • And a fourth, a fourth of the middle income tax payers will pay more.

  • The biggest tax cuts go to the top earners.

  • Other tax goodies for the top: Repealing the AMT.

  • The estate tax, also repealing that.

  • Preserving the carried interest deduction, that's mainly used by

  • hedge fund and private equity managers and real estate developers.

  • So, Chris, the criticism from Democrats, and frankly from many economists about this,

  • this is definitely corporate tax reform, corporate tax cuts,

  • less so on the individual side unless you were rich.

  • But it's being sold as the best deal for the middle class that they've gotten in for the long time.

  • - Christine Romans, thank you for keeping us up the facts. - You're welcome.

The House and Senate tax goes differ on some major points.

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How the Republican tax plans would impact you

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