“When we first discovered that changes made to how unearned income for students is taxed was having unintended consequences on some college scholarships, we quickly went to work on solutions,” Mr. Solis said. Democrats have expressed openness to fixing some other problems caused by the law, including harm to restaurant owners seeking to remodel their establishments. But after unanimously opposing the law, they are likely to demand a price for getting Republicans out of a political jam. The new tax structure imposes a range of levies on unearned income: 10 percent on amounts up to $2,550, 24 percent on unearned income over $2,550, 35 percent on amounts over $9,150 and 37 percent on amounts over $12,500. Under the new law, that money would be taxed up to 35 percent.

Source: New York Times May 17, 2019 09:01 UTC