Summary of the Distributional Impacts of the Senate GOP Proposal
The GOP Senate tax proposal is Robin Hood in Reverse. It steals from the poor to give to the rich. At a time when three people own half our nation’s wealth, the depth of the theft envisaged in this proposal is simply inexcusable. This analysis does not include the GOP budget proposal’s efforts to cut a trillion from Medicaid and $500 billion from Medicare to balance these tax cuts.
These figures are derived from the Joint Committee on Taxation’s November 16, 2017 analysis. I summarize for the bottom four reported income brackets and the top three income brackets.
There are roughly 20 million American tax filers with incomes of $10,000 or less. In 2019, they will get an average tax break of about $103 million or $5 per person. Under the Senate GOP proposal, they will pay $275 million more in annual taxes in 2025 than they do today or $14 per person. In 2027, they will pay $424 million more in taxes.
There are roughly 20 million American tax filers with incomes between $10,000 and $20,000 annually. In 2019, they will get a tax break of about $366 million or $18 per person. Under the Senate GOP proposal, they will pay $3.8 billion more in annual taxes in 2025 than they do today or $192 per person. In 2027, they will pay $6.5 billion more in taxes or $326 per individual.
There are roughly 22 million American tax filers with incomes between $20,000 and $30,000 annually. In 2019, they will get a tax break of about $1 billion or $45 per tax filer. Under the Senate GOP proposal, they will pay $4.1 billion more in annual taxes in 2025 than they do today or $186 per tax filer. In 2027, they will pay $8.5 billion more in annual taxes or $388 per individual.
There are roughly 16 million American tax filers with incomes between $30,000 and $40,000 annually. In 2019, they will get a tax break of about $3.5 billion or $218 per tax filer. Under the Senate GOP proposal, they will pay $399 million more in annual taxes in 2025 than they do today or $25 per tax filer. In 2027, they will pay $5.3 billion more in annual taxes or $331 per individual.
There are roughly 13 million American tax filers with incomes between $40,000 and $50,000 annually. In 2019, they will get a tax break of about $5 billion or $384 per tax filer. Under the Senate GOP proposal, they will pay $1.8 billion less in annual taxes in 2025 than they do today or $112 per tax filer. In 2027, they will pay $5 billion more in annual taxes or $384 per individual.
There are roughly 9 million American tax filers with incomes between $200,000 and $500,000 annually. In 2019, they will get a tax break of about $39 billion or $4333 per tax filer. Under the Senate GOP proposal, they will pay $44 billion less in annual taxes in 2025 than they do today or $4888 per tax filer. In 2027, they will pay $5.9 billion more in annual taxes or $655 per individual.
There are roughly 1.2 million American tax filers with annual incomes between $500,000 and $1,000,000 annually. In 2019, they will get a tax break of about $16 billion or $13,333 per tax filer. Under the Senate GOP proposal, they will pay $16 billion less in annual taxes in 2025 than they do today or $13,333 per tax filer. In 2027, they will pay $1.6 billion more in annual taxes or $133 per individual.
There are roughly 0.6 million American tax filers with annual incomes over $1,000,000 annually. In 2019, they will get a tax break of about $8.8 billion or $14,666 per tax filer. Under the Senate GOP proposal, they will pay $8.8 billion less in annual taxes in 2025 than they do today or $14,666 per tax filer. In 2027, they will pay $1.3 billion more in annual taxes or $2166 per individual.
Prepared by: Lucien Wulsin
Dated: 11/17/17