House Republicans are zeroing in on a sweeping tax package. Here’s what it could mean for you

Many taxpayers could see even more money in their pockets in coming years under a sweeping tax and spending cuts package that House Republicans hope to finalize before Memorial Day.

Many taxpayers could see even more money in their pockets in coming years under a sweeping tax and spending cuts package that House Republicans hope to finalize before Memorial Day. The tax portion of the legislation, which the House Ways and Means Committee approved on Wednesday, makes permanent essentially all of the individual income tax breaks in the GOP’s 2017 Tax Cuts and Jobs Act, which were set to expire after this year. Those measures may not be as noticeable to taxpayers since they currently enjoy those benefits and may not realize they could be facing a tax hike next year if the provisions are allowed to lapse. The proposal also provides some temporary tax relief for certain individuals, such as parents, senior citizens and tipped workers. Most taxpayers, aside from those with the lowest incomes, would see their average federal income tax rate decrease over the next decade, according to the Joint Committee on Taxation. For instance, households earning between $60,000 and $80,000 a year would see their average tax rate fall to 11.4% in 2027 under the proposal, compared to 13.1% under current law. For those earning more than $1 million, their rate would be 28.3%, compared to 31.1%. But those earning less than $15,000 would see an increase to 4.8%, compared to 4%, likely in large part because of the expiration of the Affordable Care Act’s enhanced premium subsidies.