Taxes Unlikely to Go Up This Year for Low Wage Earners
The Claim
In accordance with the Republican 2018 tax plan, taxes are going to go up this year for Americans with an income under $75,000.
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Emerging story
The 2018 tax plan was a controversial one. It is alleged to raise taxes for people who make under $75,000 a year, starting in 2021.
People on social media voiced their concerns.
While it was billed as a tax cut for all Americans, some werenât quite so sure. The Joint Committee on Taxation (JCT), a nonpartisan group affiliated with congress, said that the bill would lead to higher taxes for taxpayers who make less than $75,000 a year.
Misbarâs Analysis
Misbar's investigation found that the situation is complex, with a lot of disagreement on whether or not the bill will raise taxes. Some say that JCTâs assessment isnât entirely accurate. The tax bill effectively removed the Affordable Care Actâs penalty on uninsured individuals at the expense of lowering tax credits for people with insurance. This appears as an increase in overall taxes but is more just a change in how insurance affects taxes.
Still, it is wrong to make the blanket statement that the tax plan raises 2021 rates on people who earn less than $75,000 a year. Itâs more complicated than that. That said, it seems that there will be a tax hike in 2026 unless Congress intervenes.
