TAX REFORM: Tax jump for households earning under $200K


The U.S. House of Representatives Republican leadership is confident it has the votes to pass a tax overhaul bill when it comes to the House floor later this week, the chairman of the tax-writing Ways and Means committee, Representative Kevin Brady, said Monday.

Yet a congressional analysis finds the Senate measure would actually increase taxes in 2019 for 13.8 million households earning less than $200,000 a year.

The Utah Republican says "a relatively small minority of taxpayers could see a slight increase in their taxes".

Congressional analysts are estimating that the Republican Senate tax bill would increase taxes in 2019 for some 13.8 million USA households earning less than $200,000 a year.

At times, the president has even predicted he will pay more under a GOP plan (Trump has not released his tax returns, but multiple provisions in the House and Senate bills appear likely to benefit his business and family). "Cut top rate to 35% w/all of the rest going to middle income cuts?"

President Donald Trump is calling on Republican lawmakers to get more aggressive with their tax proposals.

Brady said including a repeal of the Obamacare individual healthcare mandate in the tax bill "remains under consideration". By 2025, 21.4 million households would have tax increases. Trump tweeted from Asia, where he is attending an economic summit in the Philippines.

The analysts found a similar magnitude of tax increases under the House bill. The Senate plan proposes to eliminate federal tax breaks for all state and local levies, including property taxes.

The GOP is moving urgently on the first rewrite of the USA tax code in three decades, but key differences promise to complicate the effort. He said he had pledged to House members to keep in the bill a deduction for state and local property taxes, up to $10,000. Identifying other sources for the estimated $17 billion price tag for advance refundings would greatly strengthen the other merit-based arguments for the value of permitting state and local governments to continue to refinance outstanding bonds at lower rates to realize savings for taxpayers.

Meanwhile, Crowley has said he believes Democrats have a better than 50 percent chance of retaking the House in 2018, and on Monday he said the politics of impeachment are already becoming a campaign issue.