More than 60 percent of households would see a tax cut of at least $100 in 2019 under the Senate GOP tax bill, but that percentage would drop in subsequent years, according to an analysis from the Joint Committee on Taxation (JCT) obtained by The Hill.
According to the analysis, about 38 percent of households would either see a tax change of less than $100 in 2019 or a tax increase. Most of the people in that group, 30 percent, would see a tax change of less than $100. Sixty-two percent of tax returns would show a decrease in taxes of at least $100.
JCT’s findings come as the Senate Republicans are expected to pass the bill by the end of the week. The Senate on Wednesday evening voted along party lines to begin debate on the measure.
Democrats and Republicans have been fiercely debating over who benefits from the tax bill. Left-leaning tax wonks on Twitter highlighted the percentage of taxpayers that wouldn’t get a large tax cut, while right-leaning experts focused on the percentage of taxpayers that would see their taxes go down.
Democrats have criticized the bill as a boon for the wealthy individuals and corporations that would come at the expense of middle class and poorer taxpayers. The majority of poor Americans don’t pay any federal income taxes, but under the new plan, many wouldn’t get a significantly larger refund.
Under the bill, a cut in the corporate tax rate from 35 percent to 20 percent would be permanent, while cuts to individual tax rates would expire after 2025.
High-income households in 2019 would be more likely to see large tax increases and decreases than those in lower income groups, according to JCT. In 2019, about 80 percent of households making more than $1 million would see a tax cut of more than $500, while about 19 percent would see tax increases of more than $500.
In 2027, after the tax cuts for individuals expire, about 61 percent of households would see little change in their taxes, and only about 16 percent would see tax cuts of at least $100.
Those in the higher income groups would be most likely to see tax cuts in 2027, with 57 percent of households making more than $1 million seeing a decrease of more than $500. About 36 percent of households in that income group would see increases of more than $500.
Go to Source
Powered by WPeMatico