Tax day is around the corner and many Pennsylvanians are busy gathering their W-2s, 1099s and other financial documents to submit their taxes for 2017. Meanwhile some Congressional leaders are making the case to extend temporary provisions to the Tax Cuts and Jobs Act (TCJA), which will expire after 2025. Republicans pushing for this legislation are spinning it as making permanent the benefits to the middle class. But, don’t be fooled.
A new report from the Institute on Taxation and Economic Policy documents how the extension of these so-called “middle class tax cuts” will continue to primarily benefit the richest Americans and will leave the poorest 20% paying higher taxes on average in 2026 than if the bill was never enacted.