So much for the "bright line test"
Another day, another broken promise. Contrary to President Trump's promises to middle class Americans, the Joint Committee on Taxation report released Friday says the GOP tax bill cuts taxes for the top 1% and leaves the middle class behind. Take a look here:
“President Trump promised to cut taxes for the middle class, but some would end up paying more under the ‘Tax Cuts and Jobs Act,’ according to a report released Friday night by Congress's Joint Committee on Taxation, the official scorekeepers tasked with determining how much any tax legislation would add to the debt and how it would impact the poor, middle class and wealthy.”
“The Trump administration says it has a ‘bright line test’ that the president won't support any tax bill that does not give the middle class relief on their taxes. The ‘Tax Cuts And Jobs Act’ that House Republicans released Thursday appears to violate that vow, at least for some middle-class taxpayers.”
“The JCT found that the GOP bill would add nearly $1.5 trillion to the debt over the next decade and that, on average, families earning between $20,000 and $40,000 a year and between $200,000 to $500,000 would pay more in individual income taxes in 2023 and beyond.”
“…but it is likely that it's in part because some tax credits aimed at helping the middle class expire in 2023, including the Family Flexibility Credit. Republicans are currently debating whether to extend this credit, but that would require revenue from somewhere else. Some are banking on Congress not allowing the credit to expire when the time comes. Upper middle-class families are also losing popular tax breaks like the state and local income tax (SALT) deduction, which may explain why they get higher tax bills.”
“It's possible that other families will also see their tax bills jump under the plan. JCT only reports what happens to the average taxpayer in each income bracket. Experts across the political spectrum, including the Tax Policy Center, plan to release more detailed reports in the coming days showing what happens to large and small families, rich and poor, and those that claim big medical deductions under the GOP plan.”
“…But David Kamin a tax professor at New York University, modeled what would happen to that family over the next decade and found that even that model family would end up paying more in tax by 2024.”
“The Trump administration says it has a ‘bright line test’ that the president won't support any tax bill that does not give the middle class relief on their taxes. The ‘Tax Cuts And Jobs Act’ that House Republicans released Thursday appears to violate that vow, at least for some middle-class taxpayers.”
“The JCT found that the GOP bill would add nearly $1.5 trillion to the debt over the next decade and that, on average, families earning between $20,000 and $40,000 a year and between $200,000 to $500,000 would pay more in individual income taxes in 2023 and beyond.”
“…but it is likely that it's in part because some tax credits aimed at helping the middle class expire in 2023, including the Family Flexibility Credit. Republicans are currently debating whether to extend this credit, but that would require revenue from somewhere else. Some are banking on Congress not allowing the credit to expire when the time comes. Upper middle-class families are also losing popular tax breaks like the state and local income tax (SALT) deduction, which may explain why they get higher tax bills.”
“It's possible that other families will also see their tax bills jump under the plan. JCT only reports what happens to the average taxpayer in each income bracket. Experts across the political spectrum, including the Tax Policy Center, plan to release more detailed reports in the coming days showing what happens to large and small families, rich and poor, and those that claim big medical deductions under the GOP plan.”
“…But David Kamin a tax professor at New York University, modeled what would happen to that family over the next decade and found that even that model family would end up paying more in tax by 2024.”