Working families will be worse off under Democrats’ higher taxes, according to a new analysis from the nonpartisan Joint Committee on Taxation. This is another devastating blow after the Congressional Budget Office revealed that Democrats’ supercharged IRS expects to grab $20 billion from lower- and middle-income earners.
Working Families at High Risk of Tax Hikes
Democrats have once again tried to hide the real effects of this bill. New analysis from the nonpartisan Joint Committee on Taxation (JCT) shows that the average working family is more likely to be worse-off than better-off under Democrats’ tax plan.
- For median-income families earning $50,000-$75,000, households are 33 percent more likely to have a tax hike than a tax cut.
- It gets worse for every dollar earned – families earning $75,000-$100,000 are four times more likely to have a tax hike than a tax cut, and families earning $100,000-$200,000 are more than ten times more likely to have a tax hike than a tax cut.
- The bill does nothing—or makes things worse—for regular working families. More than 92 percent of households with incomes under $200,000 get no benefit—or a tax hike—under Democrats’ bill.
- What’s more, these tax hikes on working families do not include the bill’s superfund or methane taxes on American energy, which disproportionately harm middle- and lower-income households through higher prices at the pump and bigger utility bills.
High-Income Households Enjoy Big Benefits
The JCT analysis shows the landscaping company owner and his workers pay more, while the wealthy homeowner gets checks from Washington for the solar panels on their roof. That’s because the “winners” under Democrats’ tax plan are the earners at the very top. Democrats’ reckless spending plan includes more than $250 billion in Green New Deal subsidies that benefit the wealthy the most.
- The percentage of $1 million-plus households getting a tax cut (19.4 percent) is twice as high as any other income group.
- The group with the next highest proportion of tax cuts is those earning $500,000-$1 million.
- Over the long term, 72.5 percent of households with income over $1 million will receive a tax cut.
More Bad News: $10.6 Billion in Tax Hikes on Working Families Next Year
Separate analysis by JCT isolates the effects of Democrats’ tax plan without the Obamacare subsidies that flow to a limited number of households in an attempt to bribe them into one-size-fits-all Obamacare plans. In 2023, Democrats would increase the total tax burden on Americans under $200,000 in income by $10.6 billion.