GOP/TAXES: “Middle-income households will get $61 billion in tax cuts in 2019 under the Republican tax plan poised for passage this week, according to an analysis released late Monday [12-18-17] by Congress’s Joint Committee on Taxation.
That amounts to 23% of the tax cuts that go directly to individuals. By 2027, however, these households would get a net tax increase, because tax cuts are set to expire under the proposed law.
The calculations are based on JCT estimates of cuts going to households that earn $20,000 to $100,000 a year in wages, dividends and benefits. Those households account for about half of all U.S. tax filers, with nearly a quarter making more and a quarter making less.
The Trump administration has emphasized the benefits of the tax plan for middle-income households.
America’s most-affluent households, those earning $500,000 or more a year, which account for 1% of filers, would also get $61 billion in cuts in the first year, according to the JCT analysis. They would get a cut of $12 billion by 2027.
That includes income earned by pass-through businesses such as partnerships and S-corporations that pay taxes on individual returns. It doesn’t include the benefits of estate-tax reductions.
Much of the rest would go to businesses in the form of corporate tax cuts, according to the JCT analysis.”
-Siobhan Hughes and Shayndi Raice, “Middle Class to Get 23% of Tax Cuts for Individuals Under GOP Bill,” The Wall Street Journal online, Dec. 19, 2017 12:36am