By Lori Montgomery, The Washington Post
Taxpayers earning more than $1 million a year would benefit the most from the GOP tax plan, the analysis shows, reaping an average $400,000 tax break that would send their after-tax income soaring by nearly 20 percent.
Meanwhile, taxpayers earning between $40,000 and $50,000 a year — closer to the national average — would see their taxes cut by about $666 on average, increasing their after-tax income by less than 2 percent.
The analysis by the Tax Policy Center, a project of the Brookings Institution and the Urban Institute, focuses solely on one part of the tax plan spelled out in the GOP budget: a proposal to collapse the rate structure, which tops out at 39.6 percent, into two brackets, 25 percent and 10 percent.
The budget, drafted by House Budget Committee chairman Paul Ryan (R-Wis.), proposes to make up the revenue lost to those changes through an overhaul of the tax code that would eliminate existing tax breaks and deductions.
But the budget leaves those details to the House Ways and Means Committee, and the Tax Policy Center did not attempt to predict the effect of those changes.
Additional Reading:
Analysis: GOP fiscal vision prioritizes enormous tax cuts for rich over deficit
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