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CBO concludes GOP tax bill would leave middle, lower-income Americans poorer
Many middle-class and lower-income Americans will pay even more in taxes if the GOP's tax bill passes, the Congressional Research Service and Congressional Budget Office both warned in recent reports.
By Rick Docksai
Feb 22, 2018

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WASHINGTON D.C. — President Trump asserts that the Republican tax-overhaul plan would be a win for all Americans, but the Congressional Research Service (CRS) and other publicly funded research institutions find that Americans who aren't in the top income brackets might lose. The law's elimination of deductions and funding for social-safety net programs would result in many middle- and lower-income taxpayers having even less income after taxes than they do now, the researchers said.

"It is not enough for the middle class to keep getting bywe want them to start getting ahead," Trump said in a Wednesday speech in Missouri.

But Americans earning less than $30,000 would actually see their after-tax income decline as soon as 2021, according to a recent CRS report. The report notes that the bill rescinds the family tax credit, which many working parents in lower tax brackets use. In addition, the report finds many middle-class Americans will pay more taxes due to income-tax bracket changes within the bill that will push them into higher tax brackets.

House Speaker Paul Ryan said that the family tax credit, currently $300 for each parent and certain dependents, will remain because future lawmakers will be under pressure to not rescind it. In the near term, however, the bill's authors need to close some present-day tax loopholes to prevent the bill from raising federal deficits beyond accepted levels, and expiring the family tax credit is one such loophole.

The Congressional Budget Office issued similar findings in a report Monday, in which it said that the after-tax incomes of Americans earning less than $75,000 will decline by 2027 under both the House and Senate versions of the bill. The CBO report blames reduced spending under the bill on Medicaid, Medicare, health-coverage tax credits, and other health programs.