Extension of 2017 tax overhaul could hit households without children
- Extending the 2017 tax cuts could leave middle-income households with higher taxes
- The majority of the tax cuts would benefit households earning over $450,000
- Households without dependents under 17 would be most affected by the extension
- Making the 2017 tax cuts permanent would create a less progressive tax system
Extending the 2017 tax cuts, which are set to expire next year, could result in higher taxes for middle-income households. The Tax Policy Center estimates that 13% of middle-income households would see an increase in their tax bills if the provisions expire as scheduled. The 2017 tax-code revamp increased the child tax credit and standard deduction but eliminated or reduced personal exemptions and other deductions relied upon by many middle-class households. The analysis shows that the majority of the $5 trillion in tax cuts would go to households earning over $450,000, shifting the burden of funding the U.S. government to middle- and lower-income Americans. Households without dependents under 17 would be most affected by the extension. Making the 2017 tax cuts permanent would create a less progressive tax system. Republicans, if they regain control of Washington, may be hesitant to add $5 trillion to the national debt and some have considered raising the corporate tax rate to offset the cost of extending individual rate cuts. The pass-through business deduction, which benefits smaller businesses, may also be on the chopping block as it primarily benefits the top 1% of earners. Allowing this deduction to expire would enable lawmakers to extend other provisions of the 2017 law. Overall, the extension of the 2017 tax cuts could have significant implications for middle-class households and the progressivity of the tax system.·
Factuality Level: 2
Factuality Justification: The article provides detailed information about the potential costs and impacts of extending the 2017 tax cuts, including analysis from the Tax Policy Center and the Tax Foundation. It presents various perspectives on the issue, including viewpoints from different experts and organizations. However, the article contains some biased language and lacks a balanced presentation of the topic, focusing more on the potential negative impacts of extending the tax cuts.·
Noise Level: 3
Noise Justification: The article provides a detailed analysis of the potential consequences of extending the 2017 tax cuts, including who would benefit and who would bear the costs. It includes insights from various experts and organizations, as well as potential alternative solutions to address the skewed benefits of the law.·
Public Companies: Broadcom (AVGO)
Key People: Benjamin Page (Senior Fellow at the Tax Policy Center), Erica York (Senior Economist at the Tax Foundation), Chip Roy (House Republican from Texas)
Financial Relevance: Yes
Financial Markets Impacted: U.S. tax policy and individual tax rates
Financial Rating Justification: The article discusses the financial impact of extending the 2017 Tax Cuts and Jobs Act on different income groups, with a focus on how it would affect middle-income households and the overall funding of the U.S. government. It also mentions potential changes to corporate tax rates and the possibility of eliminating certain provisions in the law. These topics are directly related to financial markets as they involve tax policy and individual tax rates, which can impact investment decisions and market trends.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.·
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