How to Invent A Middle-Class Tax Hike
A case study in how Washington math distorts reality.
But in some earlier years Joint Tax shows tax increases. For example: In 2023 the average tax rate for folks earning $20,000 to $30,000 would increase to 4.2% from 3.7% under present law, or so the budget lords say.
Recall that the Senate bill repeals the ObamaCare penalty on folks who decline to buy health insurance. This “saves” money under the Senate’s bonkers budget rules. Joint Tax assumes the following:
Some folks may choose not to buy ObamaCare, though the plans and relevant subsidies will still be available. As a result of all this human freedom, some taxpayers may not claim the Affordable Care Act’s tax credits. Presto! A Republican tax increase on the poor and middle class.
.. Senator Pat Toomey of Pennsylvania exposed this logic: “Let’s imagine somebody qualifies for unemployment insurance” but chooses not to sign up. Then they wouldn’t receive unemployment benefits. “Did that person just get a tax increase?”
The answer is so obvious that only intelligent people could get it wrong.