This morning the Joint Committee on Taxation released updated distribution tables for the Senate Mark, revised to take into account the amendments proposed by Senate Finance Committee Chairman Orrin Hatch (R-UT) on Tuesday. (You can read our summary of the amendments here).
In contrast to the JCT’s estimates of the original Senate Mark, the revised estimate shows those earning less than $75,000 facing a tax increase by 2027 (including a 25.4% increase for those earning between $20,000 and $30,000 when compared to current law).
On Thursday morning, Senator Hatch told reporters that the increase was driven in large part by the repeal of the individual mandate, because removing the penalty would lead to fewer individuals signing up for federally subsidized health coverage (the subsidies are delivered in the form of tax credits in many instances). The increase may also be driven in some instances by the amendments’ 2025 sunset of all of the reforms affecting individuals under the Senate Mark other than the use of chained-CPI for purposes of the inflation adjustments built into the Code.