SALT LAKE CITY (News4Utah) – A local organization is sending out a warning about the tax reform bills being considered in Washington D.C.
Voices for Utah Children just released a new study. It claims both bills would penalize some larger families.
Tax reform appears to be on the fast track. President Donald Trump mentioned it from the Utah State Capitol just last week.
“We’re now one huge step closer to delivering for the American people the historic tax relief as a giant present for Christmas.”
As the House and Senate work on reconciling the two bills, Voices for Utah Children is encouraging a different approach.
“Slow down! Tax experts all over the country are saying this is moving too fast, there are all kinds of unforeseen consequences,” said Matthew Weinstein.
He says one of those consequences is both bills discriminate against some families with three or more children, and Utah has lots of them.
“That effect is particularly egregious among the lower to middle income households,” said Weinstein.
According to their analysis, 33% of families earning up to $76,000 a year will immediately pay higher taxes under the House plan.
Under the Senate plan, they would find relief at first, but ten years down the road 58% would pay higher taxes. Weinstein says the solution is to make the child tax credit refundable for working families.
Utah Senator Mike Lee tried to make that happen, but it was pulled from his amendment to double the child tax credit.
“He’s been a terrific leader on this issue, and we hope he’ll really play a little hardball with the senate leadership for Utah’s kids,” said Weinstein.
Senator Lee has said he regrets that he wasn’t able to get the refundable portion through, but says the effort laid the groundwork for future reform.