House Speaker Paul Ryan backed off his promise that everyone would get a tax cut in the GOP’s overhaul plan, as nonpartisan analyses showed that some people would pay more.
“At every income level, there is a tax cut for the average family,” Ryan said in a statement Thursday, citing a study by the Joint Committee on Taxation.
This is different from his response in a radio interview Wednesday. “So actually, even though there’s a lot of false information out there, everybody gets a tax cut,” Ryan told Brian Kilmeade of Fox News. “The Joint Committee on Taxation that runs the numbers for us, that runs the numbers for Congress, says everybody gets a tax cut, everyone gets the tax cut.”
The bill would cut individual income tax rates for almost all taxpayers who make less than $1 million a year. But it also does away with various credits, deductions and exemptions, leading to higher taxes for some, depending on how they use such breaks, according to various analyses.
The income tax rate will remain at 39.6% for those making more than $1 million, but many of those taxpayers will benefit from the elimination of the alternative minimum tax and the phase-out of the estate tax.
The Joint Committee on Taxation’s own analysis forecasts tax increases for some categories by the end of the coming decade, including those making $20,000 to $40,000. The Tax Policy Center estimates that 7% of filers face an increase in the first year rising to 25% by 2027.
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