Published December 20, 2017
WASHINGTON – Five days from Christmas, the House of Representatives on Wednesday passed a very unpopular tax bill, after the U.S. Senate voted to pass the measure overnight early Wednesday morning. The major overhaul of the tax code passed with no Democrats suppporting it in either the House or Senate. In the House, 12 Republicans voted no on the bill. The bill will now be sent to President Trump’s for him to sign it into law.
The bill is highly unpopular among Americans because it provides enormous tax breaks for the top one percent of the population, which will drastically widen the gap between the rich and the poor. The bill undermines health care coverage by repealing the individual mandate in the Affordable Care Act. This will cause premiums to rise by 10 percent for the average person and 13 million people will go without coverage.
The new tax bill drops the corporate tax from 35 percent to 21 percent. Across the board, taxes will be cut for most Americans, but the highest percentages will benefit the wealthy. Most the of the tax breaks will end in 2025, which will mean the middle class will pay more in taxes.
The tax cuts for the middle class average about $18 per week or the cost of a pizza. Some argue Congress should have given the middle class more tax relief. Many families struggle and need to take out online loans to meet their basic needs.
According to the nonpartisan Tax Policy Center, in 2018, taxpayers earning less than $25,000 would receive an average tax cut of $60. Those earning between $49,000 and $86,000 would get an average cut of about $900; those earning between $308,000 and $733,000 would receive an average cut of $13,500; and those earning more than $733,000 would receive an average cut of $51,000.
It is estimated the tax bill will add $1.5 trillion to the deficit over the next decade.