Most of the users of this site are lower income families or they tend to be struggling due to some form of unexpected financial crisis. This means that most users of this site will be hurt by the Republican tax plan that the Senate/Republicans/Trump is putting together.
The non-partisan Congressional Budget Office (CBO), which is not influenced by politics and is even keeled in how it makes judgement, shows that people earning over $100,000 per year will benefit from the plan. On the other hand, lower income families with an income that ranges from $30,000 to $75,000 will suffer under the Republican Tax plan. The CBO generally predicts lower income families will be negatively impacted more and more as time goes on, with many losing out 5-10 years down the road.
The conclusions are also supported by the Joint Committee on Taxation, or JCT. This organization also shows that low income families will be hurt by the 2018 tax bills. This is therefore 2 independent organizations that have come to the same results; the wealthy benefit and the poor suffer.
Reasons why lower income families will suffer
Once again, the tax plan has not been finalized yet. The House of Republicans as well as Senate still need to reconcile their bills and then vote on a final product. Then of course the President needs to sign it. So anything can change from now until it is effective on January 1, 2018. That being said, the CBO estimates that based on the two plans, the following will more than likely occur.
Most of the impact to lower income families will be due to the reduction in government aid (namely health care) and the increased cost of insurance. So while their net federal government taxes may not increase that much, the cost to the household for paying for health or dental insurance, medical care, disability expenses, and similar bills will increase. This is obviously bad news for people that may now be living check to check. It is also horrible news for the elderly and disabled, who often rely much more on benefits than other people.
According to the CBO, one of the main drivers for the harm done to families will be the cancellation of the health insurance mandate. This means that each American will no longer need to have insurance; the mandate will be cancelled. While on the surface this may not seem like a terrible thing, the Congressional Budget Office predicts this change will drive up the cost of policies for everyone, including low to moderate income households.
So people will need to pay more out of pocket money for their medical bills, which is bad news. The poor will have lower tax credits as well as government benefits given to them. Of course this means that more of their own personal income will need to be used to pay for their health as well a dental care.
So, what can low income families do? Really the only thing is to call their congress person and tell them to vote no. This is even more true if your congress person is a Republican. In addition, write them letters. Maybe go to some of the online forums out there and post your displeasure to this 2018 tax bills. Express yourself!
Time is short. Sadly, it does not seem comments from the general public often matter that much; especially the poor or vulnerable. And while this may not do much, it may make a difference in how the final 2018 Republican Tax Plan comes together.