A Senate Republican senator on Tuesday accused President Donald Trump’s tax plan of being just the beginning in its overhaul of the U.S. tax code, which he said would slash taxes for some middle-class families and boost the fortunes of corporations.
The Senate Republican Tax Committee released a draft of Trump’s proposed tax overhaul on Monday that would slash individual and corporate taxes for all taxpayers, while lowering rates for some households and businesses.
But the plan would also raise taxes for most families and corporations, leaving millions of middle-income families and small businesses worse off, said Sen. Ron Johnson, R-Wis., who is running for re-election.
That includes people making less than $250,000 and families earning less than about $40,000 a year, according to the draft.
The proposal would also increase taxes on some taxpayers.
For some families, those would include parents, grandparents, stepchildren and others who pay taxes on income earned from self-employment, including from self‐employment that is taxed at the same rates as income earned by a spouse, a partner or a partner in a partnership, the draft said.
For others, it would include spouses, parents and children, as well as other individuals, the Senate draft said, noting that they make up more than 90 percent of taxpayers.
In the House, the proposal would be the third major rewrite of the tax code in two years.
And the draft was similar to one released by the nonpartisan Congressional Budget Office last week.
The nonpartisan analysis said that the Senate tax proposal would add $1 trillion to the federal debt over a decade, including $3.8 trillion over the next decade.
The CBO estimated that the GOP tax proposal, which is similar to the CBO’s previous version, would add another $3 trillion to that debt over the same period.
A number of Republicans have been pushing for the tax overhaul to include tax cuts for people making more than $200,000 or $250.
A Senate Republican aide said that is not necessarily what the plan does, though.
The aide said the draft version of the plan was not final, but was being reviewed.
The Republican tax plan is expected to include a $10,000 exemption for families making more of $200 to $250 a year and a $100 credit for people earning more than that.
Democrats have said the tax plan will give big tax cuts to the rich and corporations.
Republicans have countered that the bill would be paid for by closing tax loopholes that help many corporations and individuals.
Some analysts have also said the GOP plan is likely to add trillions of dollars to the national debt over time.