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The tax cut for Americans who earn over $1 million a year has more than tripled since the House first introduced their tax plan

Republicans have reportedly changed the top individual bracket to 37%, down from the 38.5% proposed in the Senate bill, and below the current 39.6%.

  • Republican are getting closer to passing their massive tax reform plan.
  • They recently changed the top individual tax bracket to 37%, down from the current 39.6%, and lower than the 38.5% proposed by the Senate.
  • This small change will give a huge boost to ultra-wealthy Americans.

Republican leaders reached an agreement on their final tax bill on Wednesday, making it more likely that federal taxes will be overhauled by Christmas.

The bill, called the Tax Cuts and Jobs Act, is currently in a conference committee to reconcile discrepancies between the House and Senate versions that those chambers passed. The official text of the compromise bill is not expected to be released until Friday — and then it will still need to be evaluated by congressional scorekeepers like the Joint Committee on Taxation.

Since it's now being reported that the top individual tax bracket would drop to 37%, we updated our analysis to compare the differences among the current system, the House's plan, the Senate's version, and the conference committee's version.

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We noticed one interesting thing in our new analysis: dropping that bracket by just 1.5 percentage point might give the ultra-wealthy a huge boost.

Just dropping the top individual tax bracket to 37% from the 38.5% originally proposed by the Senate can lead to huge savings for ultra-wealthy Americans. It's most useful to compare the conference tax version to the Senate's version because their brackets are identical aside from the top tax bracket.

Those earning $10 million a year would save an estimated $361,435 compared to the current tax system. That translates to nearly $140,000 more in savings under the conference committee's version compared to the Senate's version.

Those earning $1 million would also save more under the conference committee's version. Those earning $300,000 to $500,000 would not see a change between the Senate and conference committee's plans since their incomes do not hit the top bracket.

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  • estimated annual tax
  • estimated annual tax
  • savings of $16,547

Most Americans will see a slight increase in their take-home pay under the current proposals. But all of that may change as many provisions are set to expire. Some analysts have said that nearly half of Americans would see a tax increase if that happens.

For our calculations, we assumed each theoretical taxpayer would itemize deductions and not be subject to the Alternative Minimum Tax. If you're curious, .

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