Congressional Budget Office Calculates Senate Tax Proposal Adds $1.4 Trillion To National Deficit Over Next 10 Years; Raises Taxes For Those Earning $75k Or Less By 2021; Lowers Taxes For Those Earning $100k Or More; Health Insurance Premiums Projected To Increase

 In Budget and Taxes, Economy, Healthcare   Last Updated: December 1, 2017

A report issued by the Congressional Budget Office on November 26, 2017 shows projected tax increases for low income individuals and families and tax decreases for higher income individuals and families over the next 10 years.

By 2019, Americans earning less than $30,000 a year would be worse off under the Senate bill, CBO found. By 2021, Americans earning $40,000 or less would be net losers, and by 2027, most people earning less than $75,000 a year would be worse off. On the flip side, millionaires and those earning $100,000 to $500,000 would be big beneficiaries, according to the CBO’s calculations.”

The Senate Republican tax bill eliminates the requirement that almost all Americans purchase health insurance or else pay a penalty. The CBO has calculated that health insurance premiums would rise if this bill becomes law, leading 4 million Americans to lose health insurance by 2019 and 13 million to lose insurance by 2027.”

One of the reasons why taxes will increase for low income individuals would be from loss of tax credits and other subsidies from health insurance.

The tax plan will also lead to “an increase in the deficit of $1,414 billion over the next 10 years.”

Read the full Congressional Budget Office Joint Committee on Taxation Report here.

 

 

Heather Long. "Senate GOP tax bill hurts the poor more than originally thought, CBO finds." Washington Post, 26 November 2017. Web. 01 December 2017.
"Reconciliation Recommendations of the Senate Committee on Finance." Congressional Budget Office, 26 November 2017. Report. 01 December 2017.
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