How the GOP tax plan could affect average Americans

The newly released plan simplifies the number of tax brackets from seven to four and expands child tax credit but slashes popular tax breaks, including deductions for student loan interest and medical expenses.
2:18 | 11/03/17

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Transcript for How the GOP tax plan could affect average Americans
George, more on the tax plan. A sweeping overhaul now revealed. To our senior congressional correspondent Mary Bruce there on capitol hill with more on what it means for families. Good morning, Mary. Reporter: Good morning, robin. Well, lawmakers are still poring over this 400 plus page bill but the big question this morning what does this really mean for you? Republicans are promising relief to the middle class, but we've learned much of that could depend on where you live and what deductions you rely on. This morning, the president is giving the sweeping new Republican tax plan rave reviews. People are loving it. We've had tremendous receptivity to a point I haven't seen anything like it. Reporter: It's a big win for the rich but the president insists that's not the case. Not for the rich. It's for the middle class and it's for jobs. Reporter: So which is it? Republicans say the average family making $59,000 a year could save roughly $1200 per year. Their bill simplifies the number of tax brackets from seven to just four. If your family makes more than $24,000 a year but less than $90,000 you would pay up to 12%. If you have children, the child tax credit expands from $1,000 to $1,600. Ecstatic, the president welcomed the plan Thursday with a smooch. But to pay for all these tax cuts, the bill slashes popular tax breaks that many Americans rely on. If you have student debt, gone would be that student loan interest deduct. The deduction for medical expenses is out too. Looking to buy a home, the mortgage interest deduction would be cut in half. Only applying to the first $500,000 of a home loan. Now, critics say this is just a boon to the rich and it is a big win for big business slashing the corporate tax rate from 35% down to just 20% and, robin, it eliminates the estate tax which is likely to benefit wealthier Americans. That is the chances the bill will pass. Reporter: I talked to some house Republicans who say this bill isn't going to cut it. They are a no but Republican leaders remain optimistic they can get this through and heard yesterday the president promised the American people this bill will be, quote, a big, beautiful Christmas present. We did hear that. All right, Mary.

This transcript has been automatically generated and may not be 100% accurate.

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