$1.5 Trillion Tax Cut Passed by House in Mostly Party-Line Vote
The committee also forecast that taxpayers earning $75,000 or less would see, as a group, large tax increases in 2027, if the individual tax cuts in the bill expire as scheduled at the end of 2025. Those tax increases would be relative to current law — meaning that those taxpayers would be worse off in 2027 than they would have been if the bill had not become law.
Senate Democrats said the bill hurts the poor; Republicans say it’s a ‘mirage.’
Senator Ron Wyden of Oregon, the ranking Democrat on the Finance Committee, called the joint committee analysis “astounding” and warned that middle-class taxpayers would get “clobbered” under the latest Republican plan.
“When you’re reaching for the cranberry sauce, Republicans are going be reaching for your pocketbooks to give handouts to multinational corporations,” Mr. Wyden said.
Senator Orrin G. Hatch, Republican of Utah and the chairman of the Finance Committee, said that the appearance of a tax increase was a mirage that is the result of arcane scoring rules. Because people will no longer have to purchase health insurance, they may no longer receive tax credit subsidies for insurance that they do not purchase.
“Without those credits, they see an overall uptick in their tax liability,” Mr. Hatch said.
The debate then devolved into an argument over what really counts as an increase and the murkiness of government scorekeeping, which Senator Patrick J. Toomey, Republican of Pennsylvania, called “ridiculous.”
Uninterested in letting go of numbers that supported his argument that the Republican tax plan is bad for the middle class, Mr. Wyden dismissed Mr. Toomey’s concerns.
“I’ve never heard a senator try to psychoanalyze a Joint Committee on Taxation table,” he said.