If you make $75,000 a year or less, you’ll be taxed at a much higher rate by 2027
If a tax bill currently being supported by Senate Republicans, individuals earning less than $75,000 a year can expect to see higher taxes by 2027. Those earning less than $30,000 a year will see their taxes increase by 2021 if the bill is passed and enacted.
Individuals earning over $100,000 a year would enjoy lower taxes in the years to follow. According to The Washington Post, these statistics come from a recent report released by Congress’s nonpartisan Joint Committee on Taxation (JCT).
The GOP’s bill will also remove the Obamacare provision that requires all Americans to buy health insurance. The Congressional Budget Office predicted this removal would lead to 13 million more Americans dropping their insurance due to higher premiums caused by the GOP bill.
Middle and lower-income families and individuals will be paying higher taxes by 2027 because individual tax cuts will go away by 2025. The GOP bill specifically states that business tax cuts will remain, but individual tax cuts will expire.
On Thursday, November 16th, the House Republicans voted on and passed their version of the tax reform bill. The Senate Republicans passed theirs through the Senate Finance Committee, and the full Senate will vote on the bill after they return from Thanksgiving break.
The House bill is making an effort to simplify the tax process by consolidating the existing seven tax brackets into four. They also want to remove many of the existing credits and deductions, and replace them with a larger standard deduction.
Some of the deductions that would disappear are for medical expenses, plug-in electric vehicles, college tuition, and theft.
If you don’t wish to see your taxes spike in the next ten years, call your senator now and ask them to vote no on the Senate Republican tax reform bill.