Republicans unveil their tax bill

The authors of the bill promise relief for the middle class.
3:57 | 11/02/17

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Transcript for Republicans unveil their tax bill
And we begin with your money. That newax plan unveiled by president trump and house Republicans. And the president's promise that it will be law by Christmas. The president showing the postcards that the president says Americans will soon be able to file their taxes on. Tonight, how much will the middle class save? How much will wealthier families save? How it affects your mortgage, your medical writeoffs, your 401(k). And a reality check. Will this pass congress? ABC's Mary Bruce, leading us off. Reporter: A beaming president trump today welcomed the sweeping new Republican tax bill with a smooch. And a holiday promise to the American people. We are giving them a big beautiful Christmas present in the form of a tremendous tax cut. Reporter: On the hill, it looked like Christmas morning for many house Republicans. This is the beginning of the end of this horrible tax code in America. We're all in. All together on this. Reporter: The bill's authors, promising relief to the middle class, say the average family making $59,000 a year could save roughly $1,200 per year. That will help you put more money away for college, save for retirement, it will help you save for a rainy day. Reporter: The number of tax brackets drops from seven to just four. A family making up to $90,000 would pay 12%. Up to $260,000, 25%. Up to $1 million, 35%. While the wealthiest Americans would still pay the same rate as they do now, 39.6%. The bill also doubles the standard deduction, making it $24,000 for married couples. But the plan also offers some big potential breaks for the rich, including repealing the estate tax after six years. They're doing tax giveaways to the wealthy and the powerful and telling the middle class, take a hike, you're on your own, baby. Reporter: The bill is a big win for big business, permanently slashing corporate taxes from 35% down to just 20%. How does lowering the corporate tax rate help middle class Americans? 70% of all gains from corporate rate reductions go to wages. Reporter: All these cuts come with a hefty price tag, costing the government roughly $1.5 trillion over the next decade. Top Republicans, including the president, had promised to reduce the deficit. Our budget deficits are massive. This country, we lose money all the time, for years and years we've had deficits. Reporter: But now -- What we're doing is taking out a $1.5 trillion loan and what we're doing with that money is we're buying an appreciable asset. Reporter: To pay for this, Republicans are proposing to change popular tax breaks. Gone would be that student loan interest deduction. And the deduction for medical expenses. The mortgage interest deduction would be slashed in half. It now only applies to the first $500,000 of a home loan. And tonight, some Republicans from high-tax states like new York, New Jersey and California are sounding the alarm about plans to eliminate state and local income tax deductions. And cap deductions for property taxes at $10,000. The people I'm hearing from the most are trump supporters and these are, again, middle income people, hard-working people. They feel they're being betrayed. Reporter: The president sounding optimistic as he heads off to Asia. I'll be back in 11 days, but I know things will go well. Mary Bruce live with us from the hill tonight. And Mary, so far as we read through this bill, no changes to how much you can actually sock away in your 401(k). We heard the president tell Republicans he'll be back in 11 days. Give us a reality check. Will Republicans be able to get this passed? Reporter: Members are still reading through this 400-plus page bill, but I've already talked with some house Republicans who say they are a no. Now, Republican leaders insist they will get this through by Thanksgiving. That's just nine working days from now. But David, even if they can pull that off, this bill still faces an uncertain future over in the senate. David? Mary Bruce leading us off tonight from the hill.

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

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