Advertisement Continue reading the main storyMeanwhile, higher income earners — who currently get no subsidies — would find themselves with a windfall. But while a tax credit returns money on a dollar-for-dollar basis, a tax deduction only yields a percentage equal to an individual’s tax rate. PhotoAnd the increase in tax credits for older Americans in the Republican construct is significantly smaller than the increase in health insurance premiums for these individuals. Advertisement Continue reading the main storyLastly, the Republicans would provide for their tax credits to increase each year by inflation plus one percentage point. The tax credits are by no means the only problem with the vision outlined Tuesday by the president.

Source: New York Times March 04, 2017 23:03 UTC