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Under GOP Tax Plan, Wealthy Americans Get Huge Tax Cut, Others Not So Much

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Under the recently released GOP tax plan, wealthy Americans will see their annual tax liabilities fall by a huge amount starting next year while 12 percent of low and middle income Americans will see their taxes increase.



Americans earning less than $48,000 per year would see their tax liabilities jump while those who earn $3.4 million or more will enjoy a $179,000 tax cut according to a new analysis by The Tax Policy Center (TPC).

RELATED: GOP Releases Their ‘Big, Fat Christmas Present’ Tax Cut Plan.

As Congressional Republicans attempt to convince majority of Americans that their tax proposal will put more money in their pockets at the end of the year, TPC said that may not be so.

“We find the legislation would reduce taxes on average for all income groups in 2018 and most income groups in 2027. The largest cuts in terms of dollars and as a percentage of after-tax income would accrue to higher-income households,” TPC said in the report accompanying the analysis.






“However, not all taxpayers would receive a tax cut under this proposal—at least 12 percent of taxpayers would pay higher taxes under the proposal in 2018 and at least 28 percent of taxpayers would pay more in 2027.”

“It’s no wonder Republicans are trying to rush this bill through — the more scrutiny it gets, the worse it looks,” Senate Minority Leader Charles E. Schumer (D-NY) said in a statement following the release of the TPC report.

TPC said that because certain provision incorporated in the new GOP tax plan will expire by 2023, most American families will see an increase in taxes.

“Overall, the tax cut would be smaller in 2027, because of the expiration of certain provisions in 2023 (including the new $300 family credit and 100 percent bonus depreciation), the effect of indexing tax parameters to a slower-growing measure of inflation, and the substitution of a child credit that is not indexed for inflation for personal exemptions that are indexed.”




Middle income Americans — those making $48,000 to $86,000 — would get an average tax cut of $700 next year in the GOP tax plan while taxpayers in the top 1 percent (those making more than $730,000) would receive an average cut of $37,000 next year, and the top 0.01 percent (those making more than $3.4 million) would see their after-tax incomes rise by an average of $179,000 in 2018.

Democrat leaders including House minority leader Nancy Pelosi and Senate minority leader Chuck Schmer of New York slammed the new GOP tax plan as a massive giveaway to the rich.

SEE ALSO: Trump Admin Accuses Teen’s Lawyers of Misleading in Abortion Case.

“It’s no wonder Republicans are trying to rush this bill through — the more scrutiny it gets, the worse it looks,” Senate Minority Leader Charles E. Schumer (D-NY) said in a statement following the release of the TPC report.

 

 

Contributor, The Liberal Advocate News

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