Sunday, December 3, 2017

Fallout from Senate GOP tax plan likely if Conference committee changes little

The fallout from Senate GOP tax reform if included in the bill's final form: for the middle class
One half of Americans will received a tax increase in 2025, cuts are only temporary. Groundwork has been laid for cuts to Medicare and Social Security.
Per Forbes: "Ah...that middle class...the very group of taxpayers for whom this plan was designed, according to those who built it. While the majority of middle-income taxpayers will enjoy a tax cut right away, some won't be so lucky, with the Tax Policy Center estimating that 15% - 20% of those earning between $86,000 and $300,000 will experience an immediate tax increase, resulting from the confluence of lost itemized deductions, eliminated personal exemptions, and slower indexing of the individual tax brackets."
By the time the budget gimmicks prevalent throughout the plan run their course in 2027, however, things are much different for the middle class. If the individual cuts are not extended at the end of 2025, the middle class will not only be left with nothing by 2027, nearly 60% of those earning between $86,00 and $300,000 will pay more than if these cuts were never enacted. Oddly enough, even IF the individual cuts expire, by virtue of the steep corporate cuts, the richest 1% do just fine, with only 16% experiencing an increase relative to current law."

No comments:

Post a Comment