Home / World News / 38 percent of Americans won’t get a sizable tax cut under the Senate GOP plan – The Denver Post

38 percent of Americans won’t get a sizable tax cut under the Senate GOP plan – The Denver Post

By Heather Long, The Washington Post

President Donald Trump flew to Missouri Wednesday to pitch his tax plan as a great benefit to the middle class, but a new analysis from the Joint Committee on Taxation, Congress’ official scorekeepers, shows that many American families won’t pay significantly less under the Senate GOP tax bill.

In 2019, 62 percent of Americans would get a tax cut of $100 or more, according to JCT. The remaining 38 percent would either pay about the same in taxes as they do now or get a tax hike. The information was shared with The Washington Post by a GOP senator’s office. It is from a JCT letter that has not been made public yet.

Trump has promised Americans “huge” tax cuts.

“We’re going to give the American people a huge tax cut for Christmas – hopefully that will be a great, big, beautiful Christmas present,” he said last week.

Among the middle class – families with incomes between $50,000 and $75,000 – JCT found that 80 percent get a tax cut of $100 or more in 2019, but 10 percent would pay about the same, and the remaining 10 percent would face a tax increase of $100 or more. Many of those people getting a tax hike probably itemize their deductions now.

Democrats have criticized Trump’s tax plan as a giveaway to corporations and the wealthy. Republicans have fired back that their plan cuts tax rates for everyone and makes U.S. businesses more competitive, which should lead to more jobs and higher wages. But while the Senate GOP plan does cut all individual tax rates in the coming years, it also takes away some popular credits and deductions such as the state and local tax deduction (SALT). The result is that not everyone gets a tax cut.

This latest JCT analysis sheds light on who gets a tax cut of a least $100 and who faces a tax increase of at least $100. Republicans will likely point out that a substantial number of millionaires aren’t winners in this tax plan: Nearly 20 percent would see their taxes go up in 2019, according to the JCT chart. Democrats will likely highlight that the vast majority of the poor – those earning less than $20,000 – aren’t any better off.

Wealthier Americans, earning between $500,000 to $1 million, appear to get the biggest benefits: 91 percent of them get a tax cut of at least $100. In contrast, 46 percent of the working poor, who make between $20,000 and $30,000 a year, would get a tax cut of at least $100. Many of the working poor filers don’t pay anything in federal income taxes now, but some are eligible for refunds from the government where they receive money back, a tactic designed to encourage people to work. What JCT is showing is that only about half of those filers would get additional money in their pockets (a.k.a. larger refunds) from what they get now.

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