Blog

Republican Plan Would Impose Tax Hike On Military Families

saluting

The House will soon vote on H.R. 8, a Republican-sponsored measure which would end vital expansions of the Earned Income Tax Credit and the Child Tax Credit and ends the American Opportunity Tax Credit (which helps make college more affordable for middle class families). The effect would be to raise taxes on 25 million families by an average $1,000. As Rep. Joe Crowley (D-NY) said on CNN this week, military families will be among those impacted by the Republican tax hike.

The Center for American Progress produced an analysis showing 3 illustrative examples of military families whose tax bill would be raised. Examples:

MARINE CORPORAL (E4), Four years’ service, married with two children

– Military basic pay: $27,660
– EITC under current tax policy and Democratic plan: $4,326
– EITC under Republican plan: $3,878

TAX INCREASE UNDER GOP BILL: $448

AIR FORCE STAFF SERGEANT (E5), eight years’ service, married with three children

– Basic pay: $34,723
– EITC under current tax policy and Democratic plan: $3,508
– EITC under H.R. 8: $2,390

TAX INCREASE UNDER GOP BILL: $1,118

U.S. ARMY PRIVATE (E1), first year of service, married with one child

– Basic pay: $18,196
– Child Tax Credit under current tax policy and Democratic plan: $1,000
– Child Tax Credit under H.R. 8: $727

TAX INCREASE UNDER GOP BILL: $273

The competing Democratic tax proposal would ensure that taxes are not raised on these military families or any other middle class families.

This entry was posted in General and tagged , . Bookmark the permalink.