A recent analysis by Congress’ Joint Committee on Taxation indicates that President Donald Trump‘s proposed tax plan offers more substantial percentage reductions in tax bills for lower-income Americans compared to high earners. The report shows that individuals earning between $15,000 and $30,000 annually could see a 21.1% decrease in their tax liabilities, while those making over $1 million would experience an 8.6% reduction.
The tax plan aims to make permanent the income tax rates established under the 2017 Tax Cuts and Jobs Act. It also includes provisions such as eliminating taxes on tips and overtime pay, increasing the child tax credit, and raising the endowment tax on certain universities. These measures are designed to provide financial relief to working-class Americans and stimulate economic growth.
Despite these benefits, some critics argue that the plan does not sufficiently address the needs of all income groups. Concerns have been raised about the potential impact of accompanying spending cuts on programs like Medicaid and nutrition assistance, which primarily serve lower-income populations.
The House Ways and Means Committee advanced the tax package with a 26-19 party-line vote, moving it to the House Budget Committee for further consideration. Republican leaders aim to unify their caucus to pass the bill through the House and Senate, with the goal of enacting it by July 4.
