- On Saturday, writing for The New York Times, Nobel Prize-winning economist Joseph Stiglitz warned that many people’s taxes are about to go up. But it’s not because Joe Biden’s campaign plan raises taxes, as President Donald Trump has repeatedly and falsely claimed.
- It’s because the Tax Cuts and Jobs Act — the controversial tax cut bill passed by Republicans on a party-line vote in 2017 — has a provision that will start slowly raising taxes next year. And ultimately, Stiglitz warned, many low and middle income people will actually pay more than they did before the bill passed in the first place.
- “President Trump and his congressional allies hoodwinked us,” wrote Stiglitz. “The law they passed initially lowered taxes for most Americans, but it built in automatic, stepped tax increases every two years that begin in 2021 and that by 2027 would affect nearly everyone but people at the top of the economic hierarchy. All taxpayer income groups with incomes of $75,000 and under — that’s about 65 percent of taxpayers — will face a higher tax rate in 2027 than in 2019.”
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