The GOP tax bill has sparked a heated debate, with mixed opinions emerging from various sectors. Advocacy groups and business organizations have raised concerns about potential losses in health insurance coverage and increased premiums that could affect millions of Americans. The Congressional Budget Office predicts that by 2027, approximately 13 million people could be uninsured as a result of the changes proposed in the legislation [1cf9ca75].
The corporate tax rate is set to be reduced from 35% to 21%, a move that has garnered support from organizations such as the Business Roundtable and the American Bankers Association, who argue that these tax cuts will stimulate economic growth [1cf9ca75]. However, Families USA has warned that the bill could have negative impacts on individuals with pre-existing conditions, raising alarms about the potential consequences for vulnerable populations [1cf9ca75].
Additionally, the legislation includes a reduction in the mortgage interest deduction cap from $1 million to $750,000, which has drawn criticism from various housing advocates [1cf9ca75]. The National League of Cities has expressed concern over the limitations placed on state and local tax deductions, emphasizing the potential financial strain on local governments [1cf9ca75].
Moreover, the National Council of Nonprofits has predicted a significant drop in charitable contributions, estimating a decrease of $13 billion as a direct consequence of the tax reforms [1cf9ca75]. Businesses for Responsible Tax Reform have criticized the complexity of the new tax structure, particularly for small businesses, which may struggle to navigate the changes [1cf9ca75].
Economists are also sounding alarms about the long-term fiscal implications of the tax bill, projecting that it could add $1.46 trillion to the federal deficit over the next decade. Alan D. Viard from the American Enterprise Institute has highlighted concerns regarding the potential for increased government debt and rising interest rates as a result of these tax cuts [1cf9ca75].
As the debate continues, stakeholders from various sectors are voicing their opinions on the GOP tax bill, emphasizing the need for a balanced approach that considers both economic growth and the well-being of American families [1cf9ca75].