Republicans in the House and Senate are preparing to send legislation to President Donald Trump that would boost the federal government’s ability to provide healthcare benefits for those who earn less than $200,000 annually.
The package would cut taxes by $200 per person, reduce corporate tax rates and eliminate a number of regulations, including the estate tax.
The proposal is expected to be sent to Trump by the end of the week, but lawmakers will have to get the legislation passed by the time it reaches the White House.
It’s expected to include $200billion in tax increases over the next decade and $1.5 trillion in tax relief over the decade.
The House GOP proposal would boost tax rates on families earning between $50,000 and $150,000, with an average tax rate of 31.6 percent.
That would add an average of $4,100 to the top marginal income tax rate, or the top rate for families earning more than $1 million a year.
The tax increases would be paid for with higher payroll taxes and by cutting benefits for millions of Americans.
House Speaker Paul Ryan told reporters Monday that he’s not concerned about the impact on the federal budget because he believes “the country is going to get back on its feet.”
“The only thing we’re going to pay for is a real infrastructure package that gets the job done and gets our economy moving,” he said.
“I don’t care what happens with tax increases.
The federal budget is our responsibility.
We’re going after it.”
The Senate GOP proposal, meanwhile, would boost federal spending on health care benefits by $400 billion over 10 years, according to a Republican aide.
That plan would also slash the corporate tax rate to 21 percent and eliminate the estate taxes.
House Minority Leader Nancy Pelosi, D-Calif., said the GOP plan was a “good first step” but that she’s concerned about its effect on the budget.
“I don, frankly, worry about the $200 tax cuts,” she said.
Democrats and progressives have long complained about tax breaks for the wealthy.
The wealthy, meanwhile have long argued that the rich don’t pay their fair share of taxes, arguing that they receive a tax break that makes them richer than they otherwise would.
Republicans argue that a tax increase for the middle class, and a tax cut for the rich, would benefit everyone.
The legislation would also repeal the Obamacare health insurance tax on people earning less than 200,000 dollars a year and eliminate several other tax breaks that were enacted under the previous administration, according in a letter to House Speaker Ryan.