Posted by
Defend America on Thursday, December 10, 2009 8:48:08 PM
How would the Reid bill affect the middle class?
There
has been confused public discussion about the effects of the Reid bill
on low- and middle-income taxpayers. Senator Grassley and his Finance
Committee staff have worked with the Joint Tax Committee staff to
disentangle the strands a present and clearer picture of the actual
financial effects of the Reid bill on different middle class
populations.
Grassley’s staff summarize the results this way:
First, there is a group of low- and middle-income
taxpayers who clearly benefit under the bill. This group, however, is
relatively small. There is another much larger group of middle-income
taxpayers who are seeing their taxes go up due to one or a combination
of the following tax increases: (1) the high cost plan tax, (2) the
medical expense deduction limitation, and (3) the medicare payroll
tax. In general, this group is not benefiting from the tax credit
(because they are not eligible for the tax credit), but they are
subject to the tax increase(s). Also, there is an additional group of
taxpayers who would be affected by other tax increase provisions that
JCT could not distribute. Finance Committee staff is working with JCT
to determine how to identify this “un-distributed” group of people. … This
analysis reveals that while a relatively small group of middle-class
individuals, families, and single parents are benefiting under the Reid
bill, a much larger group of middle-class individuals, families, and
single parents are disadvantaged.
http://keithhennessey.com/2009/12/10/reid-bill-middle-class/