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There are a few places where we can already see the gap between what Republicans are claiming their tax plan will do for you and what it will really do that should tell us all we need to know: if they need to lie and misdirect that much to sell the plan, voters definitely shouldn’t be buying. Take the claim that the plan would “lower the tax rate ‘for low– and middle-income Americans’ from 39.6 percent to 35 percent so ‘people can keep more of the money they earn’” … where the “low- and middle-income Americans” in question are earning $450,000 a year. Or take the $1,182 per year tax cut for a family making the median income of $59,000 a year. The reality behind that one gets complicated fast:
Under the current law, parents may claim personal exemptions on their tax forms for themselves, their spouses and their children. The
bill would replace those exemptions with an expanded child tax credit and a $300 personal credit for each parent. For some families, the value of the new package appears to be less than the value of the old package, so their taxes would go up. Also, the $300 credit is set to expire after five years.
Other workers will see tax increases by losing access to deductions they currently make heavy use of. Most notably, that includes workers with high out-of-pocket medical costs, who would no longer be able to deduct them under the Republican bill.
A former Obama administration official has calculated that by 2024, that $1,182 cut would have turned into a higher rate than under current law.
People with student loans would also lose out, and teachers? Screw teachers:
On the secondary school side, the House GOP plan scraps a tax break that allowed teachers to deduct up to $250 in out-of-pocket expenses for the classroom.