With Tax Hikes for Working Class, CBO Shows Senate GOP Plan ‘Steals From Poor, Gives to Rich’

posted in: Tax Policy, Uncategorized | 0

Posted at https://www.commondreams.org/news/2017/11/27/tax-hikes-working-class-cbo-shows-senate-gop-plan-steals-poor-gives-rich

Published on Monday, November 27, 2017 by Common Dreams

New report shows that in 2027, taxpayers making up to $75,000 would see a tax hike

By Andrea Germanos, staff writer

Senate Finance Committee chairman Orrin Hatch (R-Utah) gestures before the start of a markup by the committee of the Republican tax reform proposal on November 15, 2017 in Washington, DC. Also pictured is ranking member Sen. Ron Wyden (L) (D-Ore.). (Photo: Win McNamee/Getty Images)

In addition to raising the deficit by an estimated $1.4 trillion over the next ten years, Americans making less than $75,000 will see a tax hike under the Senate Republican tax plan, while those making over $100,000 would be rewarded with tax cuts, a new analysis by the nonpartisan Congressional Budget Office (CBO) finds.

The report further belies the GOP’s claim that the proposal will “strengthen the middle class.”

The analysis, released Sunday, shows that taxpayers making up to $30,000 will see their tax burden increase by 2019. By 2021, that extends to those making $40,000 and under. In 2027, those making up to $75,000 would see a tax hike. Taxpayers making over $100,000, in contrast, would receive cuts at all the time points listed.

According to Ben Wikler, Washington director for MoveOn.org, “This fact won’t flip a single GOP vote. But your activism could.”

Scores of actions aimed at targeting senators are slated for this week, with a vote expected Thursday or possibly earlier. UltraViolet, a group that advocates for gender equity and other progressive issues, is among those using the hashtag #TrumpTaxScam to highlight what they say is the essence of the GOP tax plan: “Steal from the poor. Give to the rich.”

Indivisible called for Monday to be a #TrumpTaxScam Day of Action, and is highlighting actions taking place around the country:

CNBC reports that the larger than projected tax burden for lower-income tax brackets “stems from the bill effectively getting rid of the Obamacare provision requiring most Americans to have health insurance or pay a penalty. Low-income Americans would receive fewer premium tax credits if more of them choose not to have insurance.” The CBO report states: “The number of people with health insurance would decrease by 4 million in 2019 and 13 million in 2027.”

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