K1052
Elite Member
- Aug 21, 2003
- 46,044
- 33,088
- 136
Another small problem...tax hike for low income folks by 2021 and gets worse when the sunset hits.
https://www.bloomberg.com/news/arti...-taxes-by-2021-on-some-lower-incomes-jct-says
The revised Senate Republican tax proposal would lead to a 13 percent tax hike on Americans making between $20,000 and $30,000 per year by 2021, according to an analysis by the Joint Committee on Taxation.
Those earning from $500,000 to $1 million would see the biggest cut in taxes -- 8.5 percent -- by 2021, the JCT said Thursday.
The hit to the $20,000 to $30,000 cohort complicates the Republican message of widespread tax relief for working Americans. Other recent studies show that plenty of benefits would go to the highest earners -- and some middle-class taxpayers might actually pay more. Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan have walked back guarantees that no one in the middle class would see a tax increase under their plans.
After 2021, earners making from $20,000 to $30,000 would continue to see a tax increase -- rising to a 25 percent hike by 2027. That year those making less than $75,000 would see a tax increase, the JCT said. Meanwhile, those earning more than $75,000 would still see small cuts.
The revised Senate plan released late Tuesday would sunset individual breaks by 2026 and in 2019 repeal the Obamacare requirement that individuals have health coverage to comply with the Senate’s rigid fiscal rules.
The negative impact on incomes from $20,000 to $30,000 may result from the provision to repeal the Obamacare individual mandate. Without the mandate, millions of lower-income Americans are projected to drop their insurance coverage, according to the Congressional Budget Office. That means they would not be eligible for refundable tax credits under the health-care law.
https://www.bloomberg.com/news/arti...-taxes-by-2021-on-some-lower-incomes-jct-says