House approves $3.8 trillion in new tax cuts with ‘Tax Cuts 2.0’
With all eyes on the Senate Judiciary Committee hearing of Supreme Court nominee Brett Kavanaugh, the House of Representatives quietly passed ‘Tax Cuts 2.0,’ Friday, a Republican bill extending individual tax cuts, with the top 1% benefiting most.
With a vote of 220 to 191, which included three Democrats voting in favor of the bill, the House approved $3.8 trillion in tax cuts, that would launch in 2025, extending individual tax cuts that are currently set to expire that year, and adding $600 billion to the national debt over the next 10 years.
“This relief goes to middle-class families and low-income families working their way up,” said Rep. Kevin Brady (R-Tx.).
Middle-class and low-income families will have a long climb to see any substantial benefits from the cut. While the bill claims to provide an average $1,600 tax cut to individuals in 2026, the cuts are not distributed evenly among every income level.
Families making $28,600 or less would see an average tax cut of $100; those making $54,000 to $95,000 would get a break of about $980; but households in the top one percent, with incomes of $836,200 or more would see a cut of $40,180, according to Business Insider.
Despite approval in the house, the bill is expected to fail in the Senate, where 60 votes are required for it to pass. Nine Democrats would need to vote in favor of the bill in addition to sweeping support from Republicans, which is unlikely, due to the additional burden the bill places on the national debt.