To pass their immense tax giveaway to the rich, Republicans need to ensure their plan would add no more than $1.5 trillion to the deficit over the next decade. To do so, they’re cutting billions of dollars in tax benefits to people trying to raise children, pay for college, buy a home or invest in renewable energy.
That is why taxes would go up for about 45 percent of middle-class taxpayers by 2026 under the House bill, according to an analysis by The Times. By contrast, the people in the top 1 percent of income will get an average tax cut of $64,720 a year by 2027, according to the Institute on Taxation and Economic Policy.
Here are some ways middle class families could be hurt:
• Republicans want to get rid of the medical expenses deduction, which is primarily used by families grappling with serious health problems.
• Under the proposal, dependent-care benefits that families receive from employers for things like day care or elder care, including flexible spending accounts, will become taxable.
•The bill would repeal the deduction for moving expenses when families take a new job that is at least 50 miles away.
• The bill repeals numerous education deductions and credits. It also makes taxable the value of the tuition and other benefits universities give to their graduate teaching and research assistants.
• The bill eliminates the adoption tax credit, which is worth $13,570 per child to parents dealing with adoption procedures that can cost tens of thousands of dollars.