New tax deal best for parents, low-income earners, students

The new tax deal the House of Representative recently passed will benefit greatly the parents, low-income families, teachers, mass commuters, and the students.

According to The Hill, the new tax bill passed last week is a 233-page bill filled with tax break laws for both individuals and businesses. It will give as much as $650 billion in tax relief announced House Ways and Means Committee Chairman Kevin Brady.

According to the Joint Committee on Taxation (JCT) the "tax extenders" package is estimated to cost $622 billion over the next 10 years. JCT continued to say that the tax provisions in the bill will have an additional cost of $58 billion in that time period.

Politico reported that the bipartisan legislation have been under works in secret for weeks. "This important achievement demonstrates what happens when Congress works for the American people," said Orrin Hatch, the Senate Finance Committee Chairman. "After years of short-term extensions, good faith bipartisan compromise prevailed."

CNN detailed how people could take advantage of this new tax law. The new law includes child tax credit to help parents afford the cost of raising children. Parents can refund 15 percent from income earned that is above $3,000.

Hope Scholarship Credit will help students afford their college tuition. This new tax package will make the American Opportunity Tax Credit (AOTC) permanent. The AOTC allows people to claim tax credit amounting to $2500 each year for education expenses included in the guidelines, and is still based on income limitations.

The new law will also provide higher refund for working families with low income through the Earned Income Tax Credit, which rewards work. Through this new tax law, employers can offer tax-free benefits for its commuting workers to subsidize the cost of transit.

Elementary and secondary teachers who pay for the supplies of their classrooms out of their good will can have a tax deduction of up to $250 for the expenses.