Senate tax bill cuts taxes of wealthy & hikes taxes of families earning under $75,000 over a decade
Source: The Washington Post
By Heather Long November 16 at 11:02 AM
The tax bill Senate Republicans are championing would give large tax cuts to millionaires while raising taxes on American families earning $10,000 to $75,000 over the next decade, according to an analysis released Thursday by the Joint Committee on Taxation, Congress' official nonpartisan analysts.
President Trump and Republican lawmakers have been heralding their bill as a win for hard-working Americans, but the JCT report casts serious doubt on that claim. Tax hikes for households earning $10,000 to $30,000 would start in 2021 and grow sharply from there. By the year 2027, Americans earning $30,000 to $75,000 a year would also be forced to pay more in taxes even though people earning over $100,000 continue to get substantial tax cuts.
Most of the hit to the poor and working-class is likely comes from the Senate Republicans' push to mix health care and tax changes. The decision to include a repeal of the individual mandate would lead to 13 million more uninsured, the Congressional Budget Office has said. Senate Republicans also made most of the individual income tax provisions expire at the end of 2025. Wealthier Americans would still benefit from a permanent cut in the corporate tax rate, which will likely boost the incomes of people who own companies or investments.
According to the JCT, the average tax rate for people working full-time minimum-wage jobs and those earning $20,000 to $30,000 would go from 3.7 percent to 4.2 percent. Meanwhile millionaires' average tax rate would fall from 32.4 percent to 30.9 percent.
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Read more: https://www.washingtonpost.com/news/wonk/wp/2017/11/16/senate-tax-bill-cuts-taxes-of-wealthy-and-hikes-taxes-of-families-earning-under-75000-over-a-decade
underpants
(182,271 posts)and all the "only HIGHER END middle class" would see an increase is total BS as well.
marybourg
(12,540 posts)those who now itemize because of large currently-deductible expenses will see their tax RISE, due to the elimination of these deductions.
tonyt53
(5,737 posts)marybourg
(12,540 posts)that most people don't do their own taxes. In many cases - if my neighbors are anything to go by - don't know whether they itemize or not, don't know what their TAXABLE income is, and have no personal knowledge of how this will affect them.
getagrip_already
(14,225 posts)bet h&r block won't put that in their ads......
The bottom three lines of that chart are where the 1% lies. In 2016, it was around $288k, in 2017 it will be around $340k.
But even there, it's heavily weighted to people earning money through c-corp's and dividend/stock income. Anyone making $200k-$400k on straight w2 and owning a home will see their taxes go up.
Taxes going up aren't a bad thing. They pay for all the stuff we take for granted. BUT, with all the benefit going to the most elite wage earners, there is little good that will come from those who do pay more.