Senate Plan Could Increase Taxes on Some Middle-Class Workers
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Both the Senate and House tax bills would make the child tax credit more generous. While the Senate version is somewhat more favorable to the middle class, both would disproportionately favor high earners.
WASHINGTON — Mitch McConnell, the Senate majority leader,
acknowledged on Friday that the Republican tax plan might result in a tax hike
for some working Americans, saying he “misspoke” days earlier when he said that
“nobody in the middle class is going to get a tax increase” under the Senate
bill.
“I misspoke on that,” Mr. McConnell, a Kentucky Republican, said
in an interview on Friday with The New York Times. “You can’t guarantee that
absolutely no one sees a tax increase, but what we are doing is targeting
levels of income and looking at the average in those levels and the average
will be tax relief for the average taxpayer in each of those segments.”
The Senate bill unveiled on Thursday would raise taxes on
millions of middle-class families, according to a preliminary New York Times
analysis. The plan would also disproportionately benefit high earners and
corporations. Still, middle-class earners would fare better under the Senate
proposal than its counterpart in the House, the analysis found.
The Senate Finance Committee bill would, on average, cut taxes
for people at every income level. But, as Mr. McConnell alluded to in his
revised remarks, those benefits would vary widely within income brackets,
depending on the specific circumstances of individuals and households, and many
would pay more than under existing rules.
Republican lawmakers have
been in a dash to devise — and pass — a tax overhaul that would mark their most
significant achievement since taking control of Congress. President Trump and
Republican leaders have outlined two main objectives for the rewrite: cutting
taxes for American businesses and for the middle class. The legislation reduces
tax rates on individuals and businesses, while eliminating some tax breaks to make
up for lost revenues. It is meant to accelerate economic growth and increase
wages for workers. Read More: NY Times
