A $2 trillion tax cut for the wealthiest Americans is the biggest tax cut “in history” according to a new study by three Republicans.
The report, commissioned by the Club for Growth, the Tax Foundation and the Institute for Taxation and Economic Policy, comes amid criticism from Democratic lawmakers who say it’s too optimistic.
It’s a bold prediction to say that tax cuts for the rich will grow faster than tax cuts to the middle class.
The biggest tax cuts in history have all been for the top 1% of earners, and those have all gone to the top 0.1%.
This is why Republicans should be skeptical of this report, which claims the tax cuts will be so huge, it’s impossible to accurately measure them.
The biggest tax cuts have come for the 1% in the last 100 years, and it’s hard to see how the tax reform bill, which is expected to pass Congress in the next few weeks, could have done anything different from what we’ve seen over the last few decades, said Roberton Williams, president of the Tax Policy Center.
The GOP should look to the CBO, which estimates the economic impact of each individual tax cut, and find that the tax plan will be even more generous to the wealthy than what we see today.
Democrats, however, are not buying the CBO’s claims.
They point out that the Tax Commission’s findings are based on assumptions about the effects of the tax bill on households and businesses.
That’s true, but the CBO itself used those assumptions to estimate how many Americans would see their tax bills go up over the next decade, rather than the total number of people who will see them go down.
Moreover, the CBO has a problem: It’s based on a single year, which isn’t long enough to accurately capture the changes to the economy as the bill is passed.
Instead, it uses a “snapshot” projection of tax cuts and the economy over the coming years.
In that projection, the top earners in the U.S. will see their taxes go up by $1.5 trillion, and the bottom 90% of households will see it go down by $800 billion.
That means that for every dollar that a wealthy household gets from the tax cut over the course of 10 years, the bottom 60% of Americans will get $1,200.
A similar scenario is used to calculate the effects on businesses.
In the first year of the bill, the bill would increase tax revenues by $9 trillion.
In 2022, the plan would reduce them by $2.4 trillion.
Republicans, on the other hand, want to focus on the economic benefits of the legislation, which include: $1 trillion to help people who have been hit hard by the recession; $1 billion for low-income families to purchase a home; and $500 billion for a permanent extension of the child tax credit.
The Republicans also want to increase the child credit by $500, which means more money for the middle classes.
While the bill does contain some of the most generous tax cuts, it will likely add trillions to the national debt in the long run, as the country’s debt grows and the burden of taxes grows.
“The bill will add billions to the debt over time, even after accounting for all the cuts, subsidies and deductions the bill includes,” said William Gale, president and CEO of the Institute of Taxation at the Tax Center.
Some Republicans have argued that the bill won’t add to the deficit because it doesn’t reduce the number of dollars that the government has to spend on Social Security and Medicare.
The Joint Committee on Taxation, a nonpartisan tax think tank, found that eliminating those programs would increase the debt by $6.6 trillion over the first decade.
But the Joint Committee did find that “some of the largest reductions in spending, tax revenues and spending on other government programs” will be offset by other programs that are funded through tax cuts.
If the tax relief package is enacted, there will be no automatic tax cuts once the bill passes, and lawmakers will have to work through a series of revenue-raising measures.
In fact, Republicans are hoping to increase spending on government programs by up to $1 in the first 100 days of the new year, the House Ways and Means Committee chairman Kevin Brady told reporters earlier this week.
For a tax bill to be “meaningful,” the bill has to be paid for through revenue-increasing measures, such as increasing the debt ceiling, extending unemployment benefits, increasing the child-care tax credit, and cutting spending on Medicaid, Medicare and other programs.
It also has to include some cuts to other programs, like food stamps, which can offset some of that cost by cutting programs like food assistance and food stamps.