It’s a Done Deal: Congress Has Wrapped Up a Massive Tax Package

“Congressional Republicans delivered an epic overhaul of U.S. tax laws to President Donald Trump on Wednesday, bringing generous tax cuts for corporations and the wealthiest Americans while providing smaller cuts for middle and low-income families.”

“Starting next year, families making between $50,000 and $75,000 will get average tax cuts of $890, according to an analysis by the nonpartisan Tax Policy Center. Families making between $100,000 and $200,000 would get average tax cuts of $2,260, while families making more than $1 million would get average tax cuts of nearly $70,000, according to the analysis.”

But, and it’s a big but, “if the cuts for individuals are allowed to expire, most Americans — those making less than $75,000 — would see tax increases in 2027, according to congressional estimates.”

Nevertheless:

Congressional Republicans have cast the bill as a blessing for the middle class, an argument they will stress in their drive to hold onto their congressional majorities in next year’s midterm elections. But one comment by Trump could complicate their messaging.

In praising the bill, Trump cited the deep cut in the corporate tax rate, from 35 percent to 21 percent.

“That’s probably the biggest factor in our plan,” the president said at the White House.

“Within minutes,” however, “during House debate at the other end of Pennsylvania Avenue, Rep. Richard Neal, D-Mass., jumped on Trump’s remarks, calling it proof that Republicans were never interested in passing meaningful tax cuts for the middle class.