As was the case with the tax cut bill passed by the House, what was sold as a tax cut for the poor and middle class is turning out to be yet another giveaway to the rich. A bipartisan analysis finds that while taxes would initially go down for the non-wealthy, they would soon go higher than they are now.
The tax bill Senate Republicans are championing would give large tax cuts to millionaires while raising taxes on American families earning $10,000 to $75,000 over the next decade, according to a report released Thursday by the Joint Committee on Taxation, Congress’s official nonpartisan analysts.
President Trump and Republican lawmakers have been heralding their bill as a win for hard-working Americans, but the JCT report casts doubt on that claim. Tax increases for households earning $10,000 to $30,000 would start in 2021 and grow sharply from there. By 2027, most Americans earning $75,000 a year or less would be forced to pay more in taxes, while people earning more than $100,000 a year would continue to get substantial tax cuts.
And that’s on top of the fact that the Senate is also doing as Trump demanded and including a provision repealing the health insurance mandate, which would result in more than ten million people not having health insurance anymore, both because some will choose not to buy it and because others will be locked out by dramatically rising premiums in the non-ACA markets. And that’s also in addition to the fact that the bill might trigger an automatic $25 billion cut to Medicare.
Now look at what happens in 2027, when only those earning at least $100,000 would see any reduction in their tax rate at all:
And that shift starts in 2021. It’s a big bait-and-switch. Meanwhile, the reductions in corporate taxes? They’re permanent, not temporary.