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Senate GOP Tax Bill Cuts Taxes Of Wealthy, Increases Taxes On Low-Income Families Over A Decade: Analysis


Senate GOP Tax Bill Cuts Taxes Of Wealthy, Increases Taxes On Low-Income Families Over A Decade: Analysis

Americans making less than $75,000 a year will see an increase in their taxes under the Senate GOP tax bill over the next decade while millionaires receive a large tax cut, according to an analysis released Thursday by the Joint Committee on Taxation, Congress’ official nonpartisan analysts.

According to the JCT analysis, taxpayers would see their tax bills drop by 7.4 percent on average in 2019 under the current bill, but by 2027, their taxes would increase by an average of 0.2 percent.

The poor would be hardest hit by the increases, with those making between $20,000 and $30,000 paying as much as 25.4% more in their tax bill by 2027.

Those making over $75,000 would still see their taxes go down by less than 1 percent by the final year.

“What is happening now is just shameful,” said Senator Ron Ryden (D-Oregon) in the Senate Finance Committee hearing shortly after the JCT tables were released. “I don’t know how anybody can go home and explain why it’s a good idea to hike taxes on parents who barely stay afloat to pay for a massive corporate handout.”

According to The Washington Post:

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, which is why most taxpayers below $75,000 end up paying more after a decade. 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.

Senator Orrin Hatch (R-Utah), the lead author of the GOP tax bill, dismissed the table as an accounting gimmick.

“Anyone who says we’re hiking taxes on low-income families is misstating the facts,” Hatch said. “Obviously we have no intention of raising taxes on those families. Every Republican on this committee has been committed to providing tax cuts for every income cohort.”


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