To the editor: The tax reform bill which the GOP keeps asserting will help the middle class will in fact in the long run make the rich richer and make up for tax cuts for the rich by squeezing most of the rest of us.
The Center on Budget and Policy Priorities is an American think tank that analyzes the impact of government budget policies. This is what the center says about the current tax reform bill:
“The Joint Committee on Taxation (JCT), Congress’s official estimator of tax legislation, has released an estimate of how the tax bill proposed by House Ways and Means Committee Chairman Kevin Brady would change revenues at different income levels across the distribution. ...
"(T)he estimates show that the tax cuts proposed in the House bill are overwhelmingly skewed to the top. They also show that some income groups, including some moderate-income households, would see tax increases (on average) in some years, in a bill that cuts taxes overall by $1.5 trillion over a decade. ...
"Based on the JCT distribution tables, adjusted to incorporate the effects of repealing the estate tax, we estimate that in 2027:
"Households with annual incomes over $1 million would see their after-tax incomes increase by 3.2 percent, 16 times the percentage increase for any income group in the bottom half of the income distribution. ...
"Specifically, the JCT estimates of the individual and business provisions show tax increases for: filers with incomes between $20,000 and $40,000 from 2023 to 2025; filers with incomes between $20,000 and $30,000 in 2027; and filers with incomes between $200,000 and $1 million in 2023.”
In short, with this bill tax cuts for the lower- and middle-income taxpayers will fade like autumn mist over time while tax cuts for the super rich will remain cemented in place.
Susan De Simone