The increases are due in part to the phaseout of the tax cuts for individuals beginning in 2025. along with also in order to stick to Senate rules limiting the 10-year impact on the federal deficit, all income groups could see their taxes jump inside the final year of the plan.
nevertheless the committee’s estimate also looked at the impact of the repeal of the Affordable Car Act’s individual mandate in which requires households to buy health insurance. along with also if lower-income households choose not to buy insurance, many will lose government tax credits in which help them cover the cost of insurance premiums.
“Without those credits, they see an overall uptick in their tax liability,” said Senate Finance Committee Chairman Orrin Hatch, R-Utah. “Nothing in our (bill) will impact the availability of premium subsidy credits.”
Here’s how the tax cuts could be distributed out over the next decade, according to the Joint Committee on Taxation.