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Senate tax bill would make taxes jump for many earning under $200,000, analysis says

Andrew Harrer | Bloomberg | Getty Images

Senate Majority Leader Mitch McConnell, a Republican from Kentucky, center, speaks as Senator Orrin Hatch, a Republican from Utah and chairman of the Senate Finance Committee, right, and Senator Chuck Grassley, a Republican from Iowa, listen during a meeting with members of the committee on tax reform legislation at the U.S. Capitol in Washington, D.C., on Thursday, Nov. 9, 2017.

Congressional analysts are estimating that the Republican Senate tax bill would increase taxes in 2019 for some 13.8 million U.S. households earning less than $200,000 a year.

The nonpartisan Joint Committee on Taxation provided the analysis Monday as the Senate’s tax-writing committee begins work on its version of the tax overhaul bill. The legislation, promoted as a boon to the middle class, would steeply cut corporate taxes, double the standard deduction, and limit or repeal completely the federal deduction for state and local property and income taxes.

The analysis of the Senate plan says 13.8 million households, or about 10 percent of all taxpayers, would face a tax increase of $100 to $500 in 2019. There also would be increases greater than $500 for a number of taxpayers, especially those with incomes between $75,000 and $200,000. By 2025, 21.4 million households would have tax increases.