On the other hand, a study the Joint Committee on Taxation (JCT) indicated that the legislation will reduce federal revenues by around $1.4 trillion over 10 years. Additionally, JCT said all income groups will see tax reduction in 2019. However, some income groups particularly those earning $20,000 to $50,000 will see tax increase in future years.
Tax reform bill still faces challenge in the Senate
Political observers believe that the tax reform still faces a hurdle in the Senate. Some Republicans acknowledged that a tax overhaul may not pass in the Senate.
Republican Cong. Steve Womack of Arkansas told CNN that Pres. Trump is aware that the Senate is an obstacle on taxes, but he believes that “they’ll come around.”
Before the vote, House Minority Leader Nancy Pelosi blasted the bill as “a tax hike on 36 million middle class.” She also stated that it is “dead in arrival in the Senate.”
A study from JCT showed that families earning less than $30,000 annually will see higher taxes under the Senate tax reform legislation starting in 2021. By 2027, families earning less than $75,000 annually will see tax hikes while those making more will enjoy lower taxes.
