Thread: A new analysis finds the GOP tax bill would be terrible for many Americans

A new analysis finds the GOP tax bill would be terrible for many Americans

Bob Bryan
November 8, 2017

The Tax Policy Center released its analysis of the GOP tax bill, the Tax Cuts and Jobs Act.
The analysis found that in 10 years, about 25% of Americans would face a higher tax burden under the legislation.
The analysis is the second attempt for TPC, after computational errors forced a retraction of their initial analysis on Monday.

The House GOP bill to overhaul the federal tax code would result in a higher tax burden for many and skew its benefits toward wealthier Americans, according to an analysis of the legislation released Wednesday.

The analysis from the Urban Institute and Brookings Institution's Tax Policy Center found that the Tax Cuts and Jobs Act (TCJA) would result in higher taxes for around 7% of Americans in 2018 and 25% of people in 2027.

The increase for one-fourth of Americans would come in 2027 because certain tax credits that benefit individuals would sunset then, according to the analysis. The Tax Policy Center found that much of the TCJA's benefits would go toward wealthier Americans.

According to the analysis, in 2018 the changes to Americans' tax bill would be:

A cut of $1,200 for the average American, increasing after tax income by an average of 1.6%.
A cut of $60 for people in the lowest quintile, increasing average incomes in the quintile by 0.4%.
An average cut of $800 for people in the middle quintile (individuals who make between $48,000 and $86,000 that year), increasing average incomes by 1.5%.
An average $37,000 cut for people in the top 1%, increasing average incomes by 2.5%. A total of 21% of the bill's benefits would go to this group, the analysis said.
76% of people would get a tax cut, 7% would see a tax increase, and 13% would see little change.

And in 2027, the changes to Americans' tax bills would be:

A cut of $700 for the average American, increasing after-tax income by an average of 0.7%.
A $10 cut for people in the lowest quintile, increasing average incomes by less than 0.1%.
A $320 cut cut for people in the middle quintile, increasing average incomes by 0.4%.
An average $52,780 cut for people in the top 1%, increasing average incomes by 2.2%. Nearly 50% of the bill's total benefits would go to the 1% in 2027, the analysis said.
59% of taxpayers would get a tax cut in 2018, while 25% would see an increase of $2,100 on average.

Wednesday's analysis does not factor in any possible impact from economic growth.

The findings are similar to those from the nonpartisan Joint Committee on Taxation, a nonpartisan congressional committee, that found roughly 20% of people would pay more in 2027.

The TPC was forced to re-release the analysis after yanking its first try due to a math error involving the dependent tax credit.

http://www.businessinsider.com/trump...l-text-2017-11

It's a 10 year tax cut for almost everyone so the headline is wrong!! The tax cut can only be for 10 years unless you have 60 votes in the Senate to pass the bill. This is extremely dishonest reporting with a headline like that.

But I have a suggestion, instead of messing with the tax rates on individuals, just increase the personal deduction, that is a tax cut for everyone. If you want a little more for everyone, then raise the personal deduction by another $500 for individuals to $12,500 and $25,000 for couples. Forget changing the rates on individuals for now and eliminating deductions, let them keep their deductions, and instead focus on the corporate and business pass-through tax cuts to 15% across the board, and forget the deduction changes there as well.

So do this:

Individuals: increase personal deduction to $12,500, $25,000 for couples

Businessess: cut tax rates to 15%

AMT: DELETE

DEATH TAX: DELETE

LONG-TERM CAPITAL GAINS TAX: DELETE

That's it, leave all the existing deductions alone, both individual and business.

That shuts down all the lobbyists and special interests. It gets rid of the despised gains and death taxes, and it grows the economy, creates the jobs, raises wages and gives all individuals a tax cut and more money in their pockets.