CBO: Senate GOP’s Tax Plan Raises Taxes On Families Earning Less Than $75,000
The Congressional Budget Office for tax policy (CBO) just released a new distributional analysis of the Senate version of the Tax Cuts and Jobs Act, and the news is terrible if you happen to earn less than $500,000 or so per year.
The new analysis found that, after most of the individual cuts in the bill expire —and the corporate cuts remain—, households earning between $75,000 and $100,000 will see, on average, no tax cut. And households earning less than $75,000 per year will see a major tax increase.
For context, the median household income in the United States is $55,000.
Per the JCT’s tables, about 65 percent of households fall into the categories that are expecting tax increases, while about 24 percent are in the privileged group that will have its taxes cut.
As noted by Vox, the analysis does leave out a few things — including the repeal of the estate tax (good for rich people) and the impact of increased insurance premiums flowing from the repeal of the Affordable Care Act’s individual mandate (bad for the poor and the middle class). But overall, the shape is clear — most people are paying higher taxes, and the rich are paying less.
By eliminating estate taxes for the wealthiest Americans, the GOP is carving out a permanent advantage for America’s richest heirs, including Trump, his Cabinet, many senators and the GOP’s biggest contributors, while adding to our already staggering $20 trillion national debt.
The GOP proposed tax plan is fiscally reckless, an expensive holiday gift for billionaires that would further increase our national debt while failing to drive economic growth.