GOP makes changes to tax bill, adjustments to tax brackets would happen immediately

FILE- In this April 13, 2014 file photo, the Internal Revenue Service Headquarters (IRS) building is seen in Washington. The rich aren’t taxed enough and the middle-class is taxed too much. As for your taxes, you probably think they’re too high as well. Those are the results of a new Associated Press-GfK poll, which found that most Americans support President Barack Obama’s proposal to raise investment taxes on high-income families. The findings echo the populist messages of Sens. Elizabeth Warren and Bernie Sanders, two liberals being courted by the progressive wing of the Democratic Party to run for president in 2016. The findings also add weight to Obama’s new push to raise taxes on the rich and use some of the revenue to lower taxes on the middle class. (AP Photo/J. David Ake, File)

WASHINGTON (AP) – House Republicans have already made a change to their big tax overhaul: Now its tax cuts would be less generous.

Ways and Means Committee Chairman Kevin Brady would adjust tax brackets immediately instead of 2023, which means more income would get taxed at higher rates over time. And it would mean less generous tax cuts for individuals and families.

It’s a new, lower inflation “chained CPI” adjustment for tax brackets.

The change would lower the value of the tax cuts by $89 billion over 10 years, compared to the version of the bill when it was unveiled Thursday.

As wages rise, middle-class filers would have more of their income taxed at the 25 percent rate instead of at 12 percent, for instance.

The move frees up money for the Texas Republican to use to address concerns by lawmakers when changing the bill further next week.

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