COLLEGE STATION, Texas--- The Senate GOP took a big step forward, Tuesday, when the Senate Budget Committee voted to pass the $1.5 trillion tax overhaul package. The full senate is expected to vote on it later this week.
The plan has republicans and democrats at loggerheads; Senate democrats are unified in their opposition to it. If three GOP senators vote against the bill, it’ll fail.
The Congressional Budget Office (CBO), a nonpartisan research center that looks into bills for congress, said the plan will add $1.4 Trillion to the already mounting federal debt.November 28, 2017
Also, the Senate’s tax plan eliminates the Obamacare-era mandate that requires you to purchase insurance, or else face a penalty.
The CBO says that could hurt Americans who earn less than $30,000 a year.
Think about it this way: say you have two friends, Karen and Rachel. Rachel makes less than $30,000 dollars a year. Karen makes more than $100,000 a year.
The CBO says getting rid of the insurance mandate would drive insurance premiums up and leave some people who make low to moderate incomes, like Rachel, unable to afford health insurance.
Here’s the tricky part: Rachel wouldn’t see her tax bill change by that much. In fact, she’ll probably keep paying what she’s always paid, maybe less. But, she may not have access to affordable health insurance and could decide to not even have insurance.
Karen (she makes $100,000 a year) and most of the other income brackets will see tax breaks at first. Their insurance premiums may go up, but as long as future congresses keep approving the tax cuts proposed in this plan, her tax rates will not go up. (It’s not certain if future congresses will extend the cuts).
Democrats argue Rachel will be worse off, because she won’t have affordable health insurance and possibly wouldn’t have insurance at all. They say, even if she gets a tax break, not having insurance will hurt her in the long run.
Republicans say our country will be better off because, for Rachel, having health insurance should be up to her, not the government. And for Karen, plus thousands like her, her tax rates will go down.Who’s right? That’s up to you.