Congress’ official tax analyst says while the Republican tax bill would mean an average initial reduction for all income groups, average taxes would rise for everyone earning under $75,000 by 2027.
The tax increase is largely because most of the legislation’s individual tax provisions expire in 2026. People making above $733,000 — the top 1 percent — would get an average $51,140 cut in 2027.
Monday’s projection was by Congress’ nonpartisan Joint Committee on Taxation. The House is on track to approve the $1.5 trillion measure Tuesday, with Senate approval expected that day or Wednesday.
The committee estimated that in 2019, people earning $20,000 to $50,000 annually would see tax cuts averaging 10 percent or more. Reductions for those making $200,000 to $1 million would be around 9 percent.
Beginning in 2023, people making under $30,000 would see average tax boosts.
Maine Republican Sen. Susan Collins says she’ll vote for the tax bill this week.
The moderate’s support means all voting GOP senators are expected to back the measure. That’s enough to approve the $1.5 trillion package.
Collins cited provisions she says she helped win, including letting people deduct state and local income, sales and property taxes up to $10,000.
The House-passed version limited that to property tax deductions up to $10,000. Current law generally allows all local taxes to be deducted without limit.
Collins was among a handful of Republicans who helped derail her party’s effort this year to scuttle the “Obamacare” health law.
Republicans have a 52-48 Senate majority. Arizona GOP Sen. John McCain is battling brain cancer and is expected to miss the vote.
Congress is expected to approve the bill this week.AlertMe