The GOP tax plan just got another brutal review

pulse

November 6, 2017 9:32 PM

A Tax Policy Center analysis of the GOP tax bill found that the wealthy would benefit and that nearly one-third of Americans would see their taxes increase.

The Tax Policy Center released an analysis on Monday of the Tax Cuts and Jobs Act.
The report found that the bulk of the benefits from the GOP tax bill would go toward wealthier Americans.
The report also found that by 2027, 28% of Americans would see their taxes increase, relative to current law.

A report published Monday found that if enacted, the Republican tax bill, the Tax Cuts and Jobs Act, would lead to higher taxes for many Americans in 10 years.

The new analysis from the Urban Institute and Brookings Institution's Tax Policy Center found that by 2027, 28% of Americans would see an increase in their tax burden due to the tax-code overhaul proposed in the bill.

According to the TPC, the expiration of several provisions designed to ease the burden on individuals would lead to an increase for many taxpayers over 10 years.

"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," the report said.

In the short term, all income groups would pay less on average than under current law — but certain proposed changes would lead to an increase in the tax burden for 12% of the population in 2018, the TPC found.

Here's a rundown of some of the other key findings from the TPC:

By 2018:
By 2027:

The TPC has come under attack from the Trump administration and congressional Republicans for a previous analysis of the tax-plan framework released in September.

Republicans argued that it didn't factor in potential economic growth from the plan. A separate analysis from the Tax Foundation found that the legislation would favor wealthier Americans in a static scenario but distribute similar benefits when adjusting for economic growth.

The TPC told Business Insider that an analysis factoring in dynamic growth effects was forthcoming.

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