How The Republican Tax Bill Would Hurt Your Family Members
As you go home to spend time with your family over the holidays, here’s a look at how the Republican tax bill would affect your family members.
Here is who will be hurt under the Republican tax bill:
Your grandparents who are retired.
AARP: “The large increase in the deficit will inevitably lead to calls for greater spending cuts, which are likely to include dramatic cuts to Medicare, Medicaid, and other important programs serving older Americans.
Your parents who own your childhood home.
New York Times: “The bill will increase many homeowners’ monthly housing costs by scaling back deductions that allow them to reduce mortgage interest and property taxes.”
Your out-of-state cousins who live in New York, New Jersey or California.
New York Times: “Homeowners in high-tax states like New York, New Jersey and California could be big losers, particularly if they have high property taxes. Their ability to deduct their local property taxes and state and local income taxes from their federal tax bills is now capped at $10,000.”
Your nephew covered under CHIP.
MSNBC: “GOP lawmakers prioritize tax cuts over children’s health program”
Your sister who commutes to work.
CBS News: “It could get more expensive to ride the subway or park your car near work. Employers would no longer be able to deduct from their taxes the cost of providing parking or transit passes worth up to $255 a month to workers. Bicycle commuters would also lose their benefit from companies.”
Your 27-year-old brother buying health insurance for the first time.
New York Times: “With the repeal of the individual mandate, some people who currently buy health insurance because they are required by law to do so are expected to go without coverage. […] This is expected to make average insurance premiums on the individual market go up by about 10 percent. All told, 13 million fewer Americans are projected to have health coverage, according to the Congressional Budget Office.”
Your sister-in-law who is a teacher.
Washington Post: “The proposal curtails the ability of taxpayers to deduct state and local taxes from their federal tax bill, limiting the deduction to $10,000. By increasing the federal tax burden on individuals, advocates worry that states, counties and school boards will have a tougher time raising money for schools, which get most of their resources from state and local tax revenues.”
Your aunt whose family qualifies for the children’s tax credit.
Center for Budget and Policy Priorities: “For starters, 10 million children under 17 in the lowest-income working families — who already receive only a partial CTC or no credit at all — will either receive no improvement in the credit or a token increase of $1 to $75. Despite the last-minute changes, these families would receive nothing more than they would have received under the Senate-passed bill.”
Your brother-in-law from Puerto Rico.
New York Times: “Puerto Rico had sought an exemption from new taxes, citing the frail state of its economy nearly three months after Hurricane Maria. But no such luck. The tax bill treats affiliates of American companies on the island as if Puerto Rico were a foreign country and imposes a 12.5 percent tax on intellectual property.”
Most of your family paying taxes after 2025.
CBS News: “Most Americans would receive tax cuts initially. But the lower rates and a host of other benefits would expire after 2025.This effectively sets up an $83 billion tax hike for many millions of Americans in 2027.”