The report shows that Americans earning $75,000 a year or less will pay more in taxes in 2027.
In December 2017, Congress and President Donald Trump endorsed the Tax Cuts and Jobs Act (TCJA), the 12th-largest tax cut measured as a share of gross domestic product (GDP) in U.S. history. The TCJA made changes to both individual income and corporate income tax while scaling back the estate and present tax. The TCJA is projected to boost the size of the economy; taxpayers will see higher pretax income in the form of higher wages and capital income.
Tax increases for households earning from $10,000 to $30,000 will start in 2021. By 2027, most Americans earning $75,000 a year or less will pay more in taxes, while people earning more than $100,000 a year will continue to pay less.
The TCJA reformed family benefits by doubling the standard deduction to $12,000 ($24,000 for married couples filing jointly), eliminating the deduction for personal exemptions, and increasing the generosity of the Child Tax Credit from $1,000 to $2,000, while capping its refundability at $1,400.
Child Tax Credit was expanded to high-income taxpayers by increasing income at which it begins to phase out from $75,000 ($110,000 married filing jointly) to $200,000 ($400,000 for married couples filing jointly). The TCJA also created a nonrefundable $500 credit for non-child dependents.