WASHINGTON (AP) — Over the next decade, the House Republican tax plan would disproportionately favor corporations and wealthy individuals. The rich wouldn't all benefit the same; the plan exhibits a preference for inherited wealth. But President Donald Trump and GOP lawmakers have asserted that, over time, the benefits of the tax cuts would trickle down to the middle class in the form of new jobs and pay increases.
Some provisions that the tax-writers have said would help the middle class would weaken or expire altogether. A new family tax credit, for example, would expire after five years. Rep. Kevin Brady of Texas, the Republican chairman of the tax-writing House Ways and Means Committee, has suggested that Congress wouldn't actually let the family tax credit expire as scheduled.
But if that's the case, it would also mean that the nation's debt would swell far beyond the estimated $1.4 trillion over 10 years in the bill's current form.
The bill also expects to raise some additional money from companies that return to the United States profits that are now held overseas and from a new excise tax on cross-border transactions among similar units of a company.
Here's how Congress' Joint Committee on Taxation has estimated revenue costs and savings from the bill. (Portions of the bill that cut taxes have a minus sign; those that raise revenue are stated as positive numbers.)
|Cut personal tax rates||-$1.09 trillion|
|Increase standard deduction||-$921.4 billion|
|Repeal personal exemptions||$1.56 trillion|
|Limit itemized deductions||$1.26 trillion|
|Phase out estate tax||$172 billion|
|Lower tax rate for business owners||-$448 billion|
|Eliminate Alternative Minimum Tax||-$696 billion|
|New family credit (ends in 2023) and expanded child credit||-$431 billion|
|Loss of higher education tax incentives||$64 billion|
|Corporate tax rate cut||-$1.46 trillion|
|Limit business interest payment deductions||$172 billion|