Low Income Americans Will LOSE Money Under Republican Tax Plan

The Republican tax bill is moving through the House of Representatives right now, and as usual, the largest benefits go to those at the very top of the income ladder. Those in the middle may end up saving a few hundred dollars a year (possibly as much as $700 per year), but those on the lowest rungs of the income ladder will actually LOSE money each year under the plan. The reason for this is because they will lose so many of the benefits that they currently receive, meaning they’ll be much worse off if this bill passes. Ring of Fire’s Farron Cousins explains what’s happening.

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*This transcript was generated by a third-party transcription software company, so please excuse any typos.

Republicans in the House of Representatives seem to have finally come to a little bit of a cohesive mass as they continue to move forward with their budget bill, which of course includes the massive, massive extension of the 2017 tax break for the wealthiest Americans, which is going to come at a cost of $4 trillion over the next 10 years. But don't worry, they say this is absolutely not just a tax cut for the wealthy elite. No, no, no. You all get tax cuts. They tell us, even though we all know from experience that we didn't actually get tax cuts when they were first passed at the end of 2017, and they're really not changing a whole heck of a lot about it other than to open up new tax cuts and credits for the top income earners. But they totally swear everybody else, you're also getting your taxes cut to. Well, according to a new analysis from the Penn Wharton budget model, the lowest income Americans, those making under $51,000 a year are actually going to lose money on this bill.

The average American in that second quintile of income. So the second fifth, making between 17,050 $1,000 per year is going to lose $705 a year from this Republican tax cut ca package. It will raise their taxes by $705 per year on average. So Republicans in Congress, just to survey's clear, let's not mince words. Let's get our talking points all on the same page here. The Republicans in Congress are raising taxes on low income Americans and cutting taxes on the wealthiest. If you make less than $51,000 a year, you will not be getting a tax cut. You will be paying more each year. Oh, but don't worry, because after the first seven years of this, you're, you're not gonna be losing $705 a year. You are gonna be losing $1,200 a year because by the year bef, uh, by the year 2033, maybe a year or two before that, that $705 per year increase in taxes jumps up to 1,200. Meanwhile, middle income earners from 51,000 to 93,000 per year, your savings from the tax cut is gonna be $845 a year. So not even a hundred dollars a month, which

Isn't even enough to cover the monthly increase You're gonna be paying for groceries and other goods from Donald Trump's trade war. So you will also technically be losing money in the long run, even if your taxes dropped by, you know, 50 bucks a paycheck. It's a scam. It was a scam when they did it in 2017. It's a scam when they're doing it again today, they're trying to tell us that this is, everybody pays less in taxes. That's total. If you make under $51,000 a year, your tax rate is increasing. On top of that. By the way, those making under $51,000 a year, you know, again, down to 17,000 a year, 17,000 a year actually qualifies you for Medicaid, food stamp benefits, all kinds of government benefits that, by the way, are also being slashed to pay for the tax cut for the wealthy. So they're losing more than $705 a year. They're losing their food, they're losing their healthcare. Also, these greedy Republicans in DC can give themselves and their donors a tax break.