Focus at Four: Tax reform possibilities and standard dedcutions

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BRYAN, Tex. (KBTX) - The U.S. House of Representatives recently passed a budget resolution, paving the way for tax reform.

But what would a tax reform look like?
How would it affect most of us here in the Brazos Valley, and who is at risk of being affected by an increase in the standard deduction?

Dr. Lori Taylor is an economist.
She is also Director of the Mosbacher Institute for Trade, Economics and Public Policy at the Bush School of Government at Texas A&M.
She joined us on First News at Four to help us understand these new proposals.

According to a Texas A&M news release, in “Are There Benefits to a Higher Standard? The Effects of Raising the Standard Tax Deduction,” Taylor summarizes how the U.S. federal income tax works and who is at risk of being affected by an increase in the standard deduction.

Taylor notes that under one prominent proposal, it is likely that 84 percent of taxpayers who currently itemize would take the standard deduction instead, but argues that, “Those privileged few who still itemize will receive subsidies for their health care, housing costs, state and local taxes, and charitable donations that the rest of us will not receive.”

She proposes that getting rid of itemized deductions altogether would be cleaner and fairer.

The Takeaway is a publication of the Mosbacher Institute for Trade, Economics, and Public Policy.

There is a link to the article in the Related Links column.
Check out the video link to get more information from Dr. Taylor's interview with News 3's Karla Castillo.