Trump signs $1.3 billion tax bill into law

The House passed the Tax Cuts and Jobs Act (TCJA) on Friday, clearing the way for it to be signed into law. 

But there was a big catch: the $1 trillion tax cut package won’t include nearly enough revenue to pay for the tax cuts.

The House’s Joint Committee on Taxation estimated that the TCJA would only generate about $1,000 per household, or $0.05 per month, as of 2027.

The nonpartisan Tax Policy Center estimated that those same households would have to spend $10,000 more per month for the full tax cut. 

That’s far from enough to pay all of the $10 trillion in tax cuts Trump promised to the American people. 

The tax bill will add $1 in tax revenue every year.

And the TCJAs tax cuts would add to the federal deficit by $1 to $2 trillion over the next decade. 

If the tax bills tax cuts don’t come in, it will lead to the loss of at least $4 trillion in revenue over the decade.

The tax cuts will also have to be paid for through higher taxes on the middle class and wealthy, which will raise a whole lot of money, according to the Tax Policy Institute. 

There are a lot of ways this tax bill could go wrong, the Tax Foundation’s Jennifer Palmieri wrote in an analysis.

The GOP tax bill would add trillions of dollars to the deficit in the next ten years, and it would cost the middle-class and working families more than $1 for every dollar of economic growth it generates. 

It is worth noting that this is a very small amount of the tax plan that would be included in the TCRA, and the Senate version of the bill would reduce the corporate tax rate to 20 percent, while lowering the standard deduction to $12,000 for a single person and $24,000 in family, according the Joint Committee. 

President Donald Trump speaks at the White House in Washington, DC, March 10, 2021.

(Reuters/Joshua Roberts) So what can you do? 

There is a lot at stake for working people, particularly for low-income and minority families.

If the TCGA doesn’t get a full deal, the middle and working classes will be left without enough money to get ahead, which is bad for them. 

One thing you can do is go to the polls and vote.

The Tax Policy center estimates that the vote could cost your family $1 a month in lost wages, or more than half a million dollars.

 If you vote for the TCSA, you’re going to have to pay taxes for a long time.

And that means you’re on the hook for many of the same things you already pay in taxes, such as your mortgage interest and child care. 

And, if you’re not a high-income family, you could lose out on your deductions for state and local taxes, property taxes, and taxes on charitable contributions. 

In the House, Representative Adam Kinzinger, a Democrat, said that the Republican tax bill’s corporate tax cut is “the most unfair tax cut in our history.” 

If we don’t do our part to fix the tax system, we’ll be back where we were on Day 1, Kinzler said. 

“There are many millions of Americans who are going to be impacted by this bill, and we are in the midst of the largest tax hike in our country’s history,” he said in a statement. 

While the TCTA isn’t a complete tax cut for the average American, it is a win for working families.

It will give middle-income families access to higher taxes, while the wealthiest Americans pay a lower tax rate. 

Congressional Democrats say that the GOP tax cuts could create millions of new jobs in states like Pennsylvania and Ohio, as well as in the construction and manufacturing industries. 

Democrats also said that Republicans are trying to “tax the middle classes to pay the bills,” adding that Republicans “are going to raise taxes for middle- and working-class families.” 

“If you can’t pay your mortgage, you have to live on your Social Security checks,” Representative Rosa DeLauro, a Massachusetts Democrat, told MSNBC.

“And if you can only work 30 hours a week, you will pay more taxes.

So we need to get the tax breaks we need, but also ensure that the middle is protected and that working people have access to jobs and to health care and to education.” 

Republicans are expected to vote on the tax bill in the House on Tuesday. 

Read more from The Hill:  Republicans set up showdown over tax bill

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