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Tax Reform Will Hit Affluent Americans the Hardest

31Jul2017

Tax Reform Will Hit Affluent Americans the Hardest

Americans earning between $149,400 and $307,900 stand to lose the most as a result of tax reform according to a new study done by the Tax Policy Center (“the Center”). The Center predicts that one-third of nearly 19 million households within that income bracket will see their tax bill increase by $3,000-$4,000 a year. Overall, the report finds that 20 percent of Americans will end up owing more.

Tax reform has garnered attention recently after the Trump administration released a vague set of tax policy principles on Thursday. Trump stated in an interview with The Wall Street Journal that “upwards revisions” will raise taxes for some people. However, his statements and proposals have failed to shed much light on exactly what the actual plan will look like.

The Big Six, a group of Republican lawmakers are working on a tax reform plan behind closed doors. Though lawmakers have failed to disclose specifics, the Center predicts that affluent Americans are at the greatest risk of owing more.

The ultra-wealthy are expected to reap additional benefits from the proposed changes. In contrast to the 1986 tax reform, there are no plans to raise rates on capital gains. It also looks like business income will be taxed at lower rates.

White House officials have created an ambitious timeline stating that Republicans intend to release a tax proposal in early September and pass it by the end of the year.

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  • 31 Jul, 2017
  • Karina Torres
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