Distribution of the GOP Tax Cuts in the Conference Committee Bill
The House and Senate Conferees have completed their horse trading and agreed on a final package. The Tax Policy Center and the Joint Committee on Taxation completed their analyses Monday, December 18. The House and Senate are voting today and Wednesday. With this info, you can explain what they did to your holiday guests should you wish to provoke an argument and spoil an otherwise lovely family dinner.
The total tax package will add $1.5 trillion to the budget deficit over the next decade. About $654 billion goes to corporations and these changes are permanent. Individuals will receive $1.126 trillion in reduced taxes, which for the most part end in 2025.
So who get’s what in 2018? The bottom 20% of taxpayers (incomes less than $25,000) get a 0.4% increase in annual income or $60 a year. Taxpayers in the middle ($49,000 to $86,000 get a 1.6% increase in annual income or $930 a year. Taxpayers in the top 5% ($308,000 to $733,000) get a 4.1% increase or $13,500 a year; they get 22% of the total individual tax cuts. Taxpayers in the top 1% (more than $733,000 in annual income) get a 3.4% increase in annual income or $51,000 a year; they receive 20.5% of the total tax cuts.
In 2027, most but not all the personal income tax cuts have expired. The bottom quintile pays $30 more a year. The middle quintile pays $20 more a year. The top quintile pays $1260 less a year. The top 1% pays $20,660 less per year and receives 83% of all the benefits of the tax cuts.
Prepared by: Lucien Wulsin