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Many in middle class would see a tax increase under GOP plan, congressional analysis finds

Lisa Mascaro and Jim Puzzanghera, Tribune Washington Bureau on

Published in Business News

WASHINGTON -- Many middle-class taxpayers will end up paying more under the House GOP tax plan, a congressional analysis concluded, despite Republican assurances that their legislation would give Americans in every income range a cut.

About 11 percent of taxpayers with incomes between $75,000 and $100,000 would see a tax increase of at least $100 in 2019, according to the Joint Committee on Taxation. By 2027, that figure would jump to 26 percent of taxpayers.

"When you go beyond the averages, it's very clear that this is the opposite of a middle-class tax cut," Rep. Sander Levin, D-Mich., said of the analysis.

The report, released Tuesday, was requested by Rep. Richard Neal of Massachusetts, the top Democrat on the tax-writing House Ways and Means Committee.

Across all income categories, 6 in 10 Americans would get a tax cut of at least $100 in 2019, the analysis found. About 8 percent would see a tax increase of more than $100. And nearly a third -- 31 percent -- would get a negligible tax change of less than $100 in either direction.

Those percentages would change over time as some of the bill's provisions, such as the elimination of the estate tax, phase in while others, including the new family tax credit, expire.

In 2027, about 46 percent of Americans would get a tax cut of at least $100. Nearly 20 percent of people would have a tax increase of at least $100.

An analysis last week by the Joint Committee on Taxation found that every income category would see an overall tax decrease in 2019, with taxes down overall by 5.9 percent. Republicans have touted those figures.

"Every single American is going to keep more of what they earn," House Majority Leader Kevin McCarthy, R-Calif., said last week.

In 2027, only taxpayers with incomes between $20,000 and $30,000 would see an overall increase, that analysis said. Their taxes would go up 1.4 percent. Overall, across all categories, taxes would go down 2.6 percent, the analysis said.

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