The Republican budget resolution, which seeks to extend the 2017 Tax Cuts and Jobs Act (TCJA), has raised concerns about significant federal revenue loss.
• If the One Big Beautiful Bill Act (OBBBA) fails, taxpayers could face a 22% tax increase, with 91% of taxpayers seeing a near 50% reduction in guaranteed income deductions.
• Democrats argue the bill benefits the wealthy and costs too much; Republicans counter that the TCJA already lowered tax rates for most brackets.
• Without new legislation, taxes will revert to pre-2017 levels, resulting in increased taxes for families, particularly affecting a median family of four by $1,695.
• Child Tax Credits would be halved, and the paid family leave tax credit would expire.
• Family farmers could face a 40% Estate Tax, and American businesses would lose significant tax credits and deductions.
• A potential loss of 5.9 million jobs and $540 billion in employee compensation is feared if tax cuts expire.
The OBBBA is seen as crucial by Republicans to prevent a massive tax increase, while Democrats warn it could lead to significant harm for working Americans and an increased deficit. The bill aims for passage by July 4, but its financial implications are heavily scrutinized.
https://www.thecentersquare.com/national/article_dae17235-b785-4964-9209-874b0a83f25c.html
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