Tax increases for households earning $10,000 to $30,000 would start in 2021 and grow sharply from there, JCT found. By 2027, most Americans earning $75,000 a year or less would be forced to pay more in taxes, while people earning more than $100,000 a year would continue to pay less. The report generated intense debate on Capitol Hill.
Most of the hit to poor and working-class Americans would come from the Senate Republicans’ push to insert a major health care change into the tax bill. Republicans are repealing the requirement that all Americans buy health insurance or face a penalty, a move that would lead to 13 million more uninsured Americans, the Congressional Budget Office has said. Many of those people earn modest incomes and currently receive tax credits and subsidies from the government to help them afford insurance. If the Senate GOP bill becomes law, premiums are expected to rise and millions would likely opt not to buy insurance anymore, meaning their tax breaks would go away, explained Thomas Barthold, head of the JCT.
