Trump Signs $1.5 Trillion Tax Overhaul Package
WASHINGTON (CBSNewYork/AP) -- President Donald Trump has signed a $1.5 trillion tax overhaul package.
Trump touted the size of the tax cut, declaring to reporters in the Oval Office before he signed it Friday that "the numbers will speak.''
"This is something I'm very proud of. Great for our country. Great for the American people. Thank you all," he said.
The president called the tax bill "an incredible Christmas gift for hard working Americans."
"I was going to wait for a formal signing sometime in early January but then I watched the news and they were saying 'Will he keep his promise? Will he sign it by Christmas?' And I called downstairs and said 'Get it ready we have to sign it now,'" Trump said.
The bill was passed by the Senate and House this week. It provides generous cuts for corporations and the wealthiest Americans and smaller ones for the middle class and low-income families.
"I consider this very much a bill for the middle class and a bill for jobs. And jobs are produced through companies and corporations, and you see that happening. Corporations are literally going wild over this," Trump said.
"The typical family of four earning $75,000 will see an income tax cut of more than $2,000, many much higher than that, slashing their tax bill in half. And they're going to start to see that in February," he added.
The tax cuts for business are permanent, but reductions for individuals and families expire after a decade. The standard deduction used by around two-thirds of Americans will nearly double to $24,000 for married couples.
The new tax plan also caps property tax deductions at $10,000, which is a big hit to some homeowners in the Tri-State Area, CBS2's Jessica Moore reported.
"This is a fraud on the American people," said New York Gov. Andrew Cuomo.
Cuomo announced an emergency executive order Friday that will allow homeowners in New York to pre-pay their property taxes before January 1, making that money deductible on their 2018 returns.
"At least this device will postpone the pain for one year," he said.
While Republicans fell short of their promise to deliver reform that allows taxpayers to file on a postcard, independent studies find the bill will save most filers anywhere from $60 to $51,000 next year, depending on their income.
But by 2027, 53 percent of taxpayers will pay more than before while savings for the very wealthy will continue to rise.
It is the first major overhaul of the nation's tax laws since 1986, but far from the largest tax cuts in American history as the president claims. Politically, it marks the Republicans' first major legislative accomplishment of Trump's presidency.
Some estimates say the cuts could add to the nation's soaring deficit.
The president plans to pay for the $1.5 trillion tax cut by investing in corporations, which he believes will spin off significant tax revenue back into the economy.
"We're very proud of it. It's going to be a tremendous thing for the American people. It's going to be fantastic for the economy," Trump said.
The changes will not affect your 2017 tax returns, but most Americans will start seeing less in taxes taken out of their paychecks in February.
Trump also signed a $4 billion missile defense bill, praising the military for its efforts in fighting ISIS.
Minutes after signing the bill into law, Trump departed for his Mar-A-Lago estate in Florida, where he will spend the holidays with his family.
(© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)
