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.