The Senate Finance Committee is expected to vote Tuesday on a GOP-led tax package that could raise taxes on some middle-class Americans.
The GOP-controlled committee has been negotiating over the tax bill for months, and its top Republican, Sen. Orrin Hatch Orrin Grant HatchGOP senators introduce bill to end US support of Israel House GOP rejects effort to extend insurance to millions MORE (Utah), is expected vote on it with Democrats.
It has been widely predicted the Senate would vote on the legislation, but it’s unclear if it will take up the legislation without a major change.
A majority of the Senate’s Republican senators voted against the previous GOP-authored version of the bill, but a minority of Democrats voted for it.
Republicans have a strong majority in the Senate, and the tax plan would be the largest increase in tax rates in the history of the United States.
It also would likely have a huge impact on the economy.
Under the House version of Trump’s plan, the top individual rate would rise to 39.6 percent.
Under the Senate bill, the rate would be 25 percent, but the GOP bill is expected not to raise it much above that.
The bill would also add a new tax bracket of $75,000 for individuals and $100,000 or more for married couples filing jointly.
The new bracket would be applied to people who earn more than $150,000 a year.
The tax cuts would be particularly helpful for people who are currently paying a higher rate than they would otherwise because they earn more money.
For instance, a person earning $150 to $200,000 per year could see a $100 credit, with the other $50 going toward a lower rate.
The new tax brackets could also benefit some high-income earners.
The top tax bracket is expected do $500,000, but people earning $1 million or more could see their tax bill go down by $10,000.
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John Barrasso, R-Wyo.
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Jeff FlakeJeff FlakeBiden: Trump has ‘a lot of anger, hatred and anger’ for GOP Senate leader McConnell McConnell McConnell to campaign with Sen. Flake in Georgia on FridayTrump and Pence meet at GOP debate: report MORE (Ariz.), who has been critical of the GOP tax plan, said Tuesday the tax credits were not needed to lower tax rates.