Opinions differ on tax measure’s effect
Impact on middle class topic of intense debate
WASHINGTON — House Republicans and Democrats bickered heatedly Monday over whether the GOP tax bill truly helps the middle class, as the Ways and Means Committee kicked off a marathon session to amend and vote on the far-reaching legislation President Donald Trump hopes to sign into law by year’s end.
Republicans focused on findings by Congress’ nonpartisan Joint Committee on Taxation that the bill would lower taxes across all income levels over the next several years.
“Clearly this is helping real people. It’s helping teachers. It’s helping students. It’s helping struggling families that are living paycheck to paycheck,” said Rep. Erik Paulsen, R-minn.
Democrats returned repeatedly to a section of the analysis showing taxes would actually go up beginning in 2023 for some 38 million taxpayers or families making $20,000 to $40,000 a year.
“There are a lot of people expecting a tax cut who would be big losers under this bill,” proclaimed Rep. Bill Pascrell, D-N.J. “This is a joke, and you’ve got to face up to it.”
The legislation adds $1.5 trillion to the national debt, delivers a major tax cut to corporations, and repeals the estate tax. It also simplifies the loophole-ridden tax code by collapsing today’s seven personal income tax brackets into four, nearly doubles the standard deduction used by people who don’t itemize, and increases the child tax credit, an element championed by first daughter Ivanka Trump.
Despite the various analyses, Republicans argued vociferously that the legislation is targeted toward the middle class.
“It’s about making America’s economy stronger than ever by delivering more jobs, fairer taxes and bigger paychecks across the nation,” said Ways and Means Committee Chairman Kevin Brady, R-texas.
Brady is aiming to push the legislation through his committee and to the full House later this week, and GOP leaders are aiming for House passage before Thanksgiving.
Late Monday, he proposed additional changes, including restoring a tax break for employees who receive child care benefits from their employers and limiting the bill’s impact on universities with large endowments.