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The Corporate Tax Cuts Will Be Permanent. But Your Tax Cut Will Disappear in 2025
The House Just Voted to Bankrupt Graduate Students
NBC analysis: GOP tax plan could save Trump and his family more than $1 billion
CBO: GOP tax bill would add $1.7 trillion to debt
https://twitter.com/abc/status/[LEFT][COLOR=#14171A][FONT="Segoe UI"]https://twitter.com/lilybatch/status/931179141675831298[/FONT][/COLOR][/LEFT]
https://twitter.com/abc/status/[LEFT][COLOR=#14171A][FONT="Segoe UI"]https://twitter.com/lilybatch/status/931179403383656448[/FONT][/COLOR][/LEFT]The Corporate Tax Cuts Will Be Permanent. But Your Tax Cut Will Disappear in 2025
Late Tuesday evening, Senate Republicans released a new version of their tax bill that makes their priorities abundantly clear. Under the newly-revised Tax Cuts and Jobs Act, individuals will lose essentially all of the benefits provided by the bill in 2026, while corporations get a massive, permanent cut. On top of that, about 13 million Americans would lose their health insurance because the bill now repeals Obamacare’s individual mandate.
The updated bill, which the Senate finance committee is expected to approve this week, cuts the corporate tax rate from 35 percent to 20 percent starting in 2019, while providing most individuals with temporary tax relief. If the individual cuts expire, a preliminary estimate from Ernie Tedeschi, a former Treasury Department economist, shows that 38 percent of taxpayers—including 50 percent of people making between $50,000 and $75,000—would pay more taxes in 2027. And that doesn’t include the fact that many Americans would be paying about 10 percent more for health care as a result of getting rid of the Obamacare mandate.
The House Just Voted to Bankrupt Graduate Students
Republicans in the House of Representatives have just passed a tax bill that would devastate graduate research in the United States. Hidden in the Tax Cuts and Jobs Act is a repeal of Section 117(d)(5) of the current tax code, a provision that is vital to all students who pursue master’s degrees or doctorates and are not independently wealthy.
I’m a graduate student at M.I.T., where I study the neurological basis of mental health disorders. My peers and I work between 40 and 80 hours a week as classroom teachers and laboratory researchers, and in return, our universities provide us with a tuition waiver for school. For M.I.T. students, this waiver keeps us from having to pay a bill of about $50,000 every year — a staggering amount, but one that is similar to the fees at many other colleges and universities. No money from the tuition waivers actually ends up in our pockets, so under Section 117(d)(5), it isn’t counted as taxable income.
But under the House’s tax bill, our waivers will be taxed. This means that M.I.T. graduate students would be responsible for paying taxes on an $80,000 annual salary, when we actually earn $33,000 a year. That’s an increase of our tax burden by at least $10,000 annually.
It would make meeting living expenses nearly impossible, barring all but the wealthiest students from pursuing a Ph.D. The law would also decimate American competitiveness.
NBC analysis: GOP tax plan could save Trump and his family more than $1 billion
Trump and his family could stand to save more than $1 billion under a tax proposal passed by House Republicans on Thursday, according to an analysis commissioned by NBC News. Most of the savings Trump and his heirs would see would come from the measure's repeal of the estate tax — the tax levied on property transferred to beneficiaries after an individual dies.
The analysis was based on Trump's estimated net worth and his 2005 tax return, the only such return made public thus far. It found that the president could save more than $20 million himself, while his heirs could save $1.1 billion.
Based on the analysis of Trump's 2005 return, the president would also save a considerable amount of money under the House bill's repeal of the Alternative Minimum Tax.
CBO: GOP tax bill would add $1.7 trillion to debt
The GOP’s tax bill would add $1.7 trillion to the national debt over the course of a decade, and increase the country’s debt-to-GDP ratio by 5.9 percentage points, according to the Congressional Budget Office.