Bill increases taxes for a quarter of middle-class wage earners, with two-thirds of millionaires getting a tax cut
In describing the proposed GOP tax plan to Senate Democrats, President Trump, dialing in for a conference call with senate Democrats, said that “rich people get hurt,” according to Sen. Sherrod Brown (D-Ohio). The statement was meant to counter claims that the plan benefits the wealthy more than it does the middle-class.
The plan ends estate taxes for the extremely wealthy, and cuts both business and individual tax rates across the board. It cuts the corporate tax rate from 35 percent to 20 percent, and it eliminates some tax breaks for teachers. In addition, it eliminates deductions for state and local income taxes.
Senator Brown has proposed two pieces of legislation which would bring some middle-class relief, including expanded access to the Earned Income Tax Credit, and rewards for businesses which keep jobs in the United States.
Despite GOP claims that the tax bill reduces taxes at every level, the nonpartisan Joint Committee on Taxation reported that people who make over $1 million in 2019 would enjoy an average tax cut of $41,557. According to the committee’s report on the Tax Cuts and Jobs Act, the bill would yield a distinct set of winners and losers, ultimately resulting in a tax increase for one out of five Americans by 2027.
The nonpartisan report determined that the TCJA would increase taxes for 23.7 percent of middle-class earners bringing in between $50,000 and $75,000 in ten years. While nearly a quarter of middle-class earners get a tax hike per the bill, the committee also determined that 66.1 percent of those earning over a million dollars a year would get a tax cut.FOLLOW NEWSORG.ORG ON SOCIAL MEDIA