Guess who wins and who loses in the GOP tax bill now being worked on in Congress?
The House Republicans’ tax bill would increase taxes for 12 percent of Americans next year, according to a new report from the nonpartisan Tax Policy Center. By 2027, at least 28 percent of Americans would see their taxes rise, the report says. Many of those taking a hit would be people who make less than $48,000 a year.
But do not fret as the report shows the rich would benefit the most. The finding comes amid intense debate over whether this bill does enough to help the middle and working classes.
The middle of the middle — those making $48,000 to $86,000 — would get an average tax cut of $700 next year, according to TPC. Meanwhile, 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.
Since the wealthy pay more in taxes, some Republicans have argued it makes sense for them to get a bigger tax cut. But TPC also looked at the percent change in after-tax income for the poor, middle class and rich. Using that metric makes it easier to compare across the income groups. According to TPC, the middle class would get a 1.2 percent boost to their after-tax income, while taxpayers in the top 1 percent would get a 2.5 percent boost. The bottom 40 percent would get almost no benefit, with taxes for that group actually increasing $10 to $20, on average, by 2027.