House Ways and Means Committee Chairman Rep. Kevin Brady (R-TX) says his tax bill will leave “every” American “better off” despite increasing taxes on millions of families.
Brady, the lead author of the House Republican tax bill that’s being backed by President Trump, said on Fox News Tuesday that middle-class families will be “better off” despite the GOP’s own analysis showing the tax plan will result in hikes on families making between $20,000 and $40,000 per year.
“So you’re saying every American gets a tax cut under your plan?” Fox host Bill Hemmer asked Brady during the interview.
Brady immediately spun the question because every American most certainly does not get a tax cut under his plan.
“So… every American will be better off under this plan,” Brady claimed. “You’ve got to look at your own unique situation but what the joint committee confirmed yesterday is, yes, the design of this, because it isn’t just about the rates, it is about cutting taxes underneath those rates as well, people are better off.”
“Um,” Hemmer replied, “I’m going to need to see it in black and white to prove it.”
It’s quite a claim to say that families making around $20,000 would be “better off” paying more taxes but the plan is actually far worse than that.
According to a New York Times analysis, nearly half of all middle-class families would pay more in taxes than they do now within the next decade. About one-third of all middle-class families would pay more by next year.
Families with children would be among those to see an immediate increase, averaging around $2,000. Those with large out-of-pocket medical costs would be the hardest hit under the plan.
“The millions losing out under the bill would largely be families with more complicated finances, who now generally itemize their deductions,” the Times reports. “The bill would eliminate many common and valuable tax deductions that, in some cases, would eliminate thousands of dollars in tax benefits. This would be particularly acute for taxpayers who deducted state and local income and property tax payments, interest on student loans, or the cost of health insurance for self-employed workers.”
“The plan could be particularly costly for Americans facing large medical bills. Nearly nine million taxpayers collectively deducted about $84 billion in medical expenses from their taxes in 2015. The House bill would eliminate that deduction.”
Mark Mazur, the head of the Tax Policy Center, explained that every tax plan has winners and losers but this plan is specifically designed to kill off the few provisions that would help middle-class families over time. Many of the provisions will expire by 2026.
“You could create a plan that just cut taxes for middle-class people,” Mazur told The Times. “That’s not what this is.”
Oregon Democratic Sen. Ron Wyden went further, blasting the bill as a “middle-class con job.”
Wyden assailed the bill for giving “gifts” to big businesses and the top 1 percent, using “funny math” to assess the cost of the plan, raising the deficit, and making “a bunch of false promises to the middle class.”