Anal­y­sis: Se­nate mea­sure would hike taxes for 13.8M

Hawaii Tribune Herald - - NEWS -

WASH­ING­TON (AP) — Pro­moted as needed re­lief for the mid­dle class, the Se­nate Repub­li­can tax over­haul ac­tu­ally would in­crease taxes for mil­lions of mod­er­ate-in­come Amer­i­can house­holds, a bi­par­ti­san anal­y­sis showed Mon­day.

The as­sess­ment by Congress’ non­par­ti­san Joint Com­mit­tee on Tax­a­tion emerged as the Se­nate’s tax-writ­ing com­mit­tee was set to be­gin wad­ing through the mea­sure Mon­day af­ter­noon, work­ing to­ward the first ma­jor re­vamp of the tax sys­tem in some 30 years.

Barg­ing into the care­fully cal­i­brated work House and Se­nate Repub­li­cans have done, Pres­i­dent Don­ald Trump called for a steeper tax cut for wealthy Amer­i­cans and pressed GOP lead­ers to add a con­tentious health care change to the al­ready com­plex mix.

Trump com­mended GOP lead­ers for get­ting the tax leg­is­la­tion closer to pas­sage in re­cent weeks in a tweet and then added, “Cut top rate to 35% w/all of the rest go­ing to mid­dle in­come cuts?”

That puts him at odds with the House leg­is­la­tion that leaves the top rate at 39.6 per­cent and the Se­nate bill as writ­ten, with the top rate at 38.5 per­cent.

Trump also said, “Now how about end­ing the un­fair & highly un­pop­u­lar in­di­vid­ual man­date in (Obama)care and re­duc­ing taxes even fur­ther?”

The leg­is­la­tion would deeply cut cor­po­rate taxes, dou­ble the stan­dard de­duc­tion used by most Amer­i­cans and limit or re­peal com­pletely the fed­eral de­duc­tion for state and lo­cal prop­erty, in­come and sales taxes. Nei­ther bill in­cludes a re­peal of the Af­ford­able Care Act’s re­quire­ment that Amer­i­cans get health in­sur­ance or face a penalty.

Trump and the Repub­li­cans have pro­moted the leg­is­la­tion as a boon to the mid­dle class, bring­ing tax re­lief to peo­ple with mod­er­ate in­comes and boost­ing the econ­omy to cre­ate new jobs.

Yet, the con­gres­sional anal­y­sis found the Se­nate mea­sure ac­tu­ally would in­crease taxes in 2019 for 13.8 mil­lion house­holds earn­ing less than $200,000 a year. That group, about 10 per­cent of all tax­pay­ers, would face tax in­creases of $100 to $500 in 2019. There also would be in­creases greater than $500 for a num­ber of tax­pay­ers, es­pe­cially those with in­comes be­tween $75,000 and $200,000. By 2025, 21.4 mil­lion house­holds would have steeper tax bills.

The an­a­lysts pre­vi­ously found a sim­i­lar mag­ni­tude of tax in­creases un­der the House bill.

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