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After touting their tax bill on Thursday, House Republicans quietly lessened the tax relief promised to middle class families through a revision issued Friday night.
In a plan that already wasn’t going to provide huge relief as promised—though some is better than none—Republicans, and Trump were looking for a legislative win. Alas, the week-kneed Republican leadership downgraded their tax-cut to the American families. Why you ask?
Well, it was to free up more money so that Republicans can cave to more demands from liberal Republicans when it comes to Senate negotiations, since it is almost certain that most Democrats will oppose any kind of tax-cut.
When it gets right down to it, most people in Washington don’t really want to let the American people keep more of their money.
The reduced tax-cut is expressly aimed at people squarely in the middle class. Under the GOP plan the lowest tax bracket would be 12%, and this would apply to the first $45,000 of taxable income for individuals—$90,000 for married couples filing jointly.
The next bracket would be 25% for income over $45,000 for individuals—$90,000 for married couples. Nothing wrong with that proposal in theory.
This is where the revision comes in. The House’s top tax-writer, Rep. Kevin Brady (R-TX) released a revised version of the bill that would impose a new, lower-inflation “chained CPI” adjustment for tax brackets immediately. This was already set to take place in 2023. Chained CPI is shorthand for “Chained Consumer Price Index,” and is a way to index spending and taxes to the rate of inflation, or the rise in prices over time. READ MORE
