The Senate Republican Tax Plan: Officially Worse than the House Republican Tax Plan
New Distributional Analysis Shows Senate Republican Plan Gives More to the Ultra-Wealthy and Less to the Poor than the House-Passed Bill
Washington, D.C. – The Republican megabill is an unprecedented handout to big corporations and the wealthy paid for by stealing from typical families and driving millions of Americans into hardship and misery. A new distributional analysis by the nonpartisan Joint Committee on Taxation of the tax provisions in the bill shows that the Senate Republican proposal is even more skewed in favor of the rich than the bill passed by House Republicans last month. According to JCT, a family earning $30,000 per year would get a tax cut of only $108 ($51 less than the House bill), while an ultra-wealthy earner in the top 0.1 percent would get $255,155 ($3,093 more than the House bill). In other words, the Republican plan is to give the ultra-wealthy annual tax breaks that are triple what the typical American household earns in an entire year.
Data Source: Joint Committee on Taxation
Republicans are also repeating their 2017 playbook by giving working families only temporary tax cuts while giving permanent breaks to corporations and the rich. By 2029, families earning less than $30,000 a year will see their taxes increase on average, while the highest earners still reap thousands of dollars in tax breaks. On top of that tax increase, these families will be devastated by cuts to health care and food assistance. Trump’s price-hiking tariffs are also raising the cost of living for typical families by $2,000 per year, more than wiping out any meager benefit from the Republican tax plan for all but the wealthy.
“Senate Republicans apparently saw the House Republican tax plan as a challenge, because their version of this bill is an even bigger rip-off,” Senator Wyden said. “This bill will give the ultra-wealthy annual tax breaks of hundreds of thousands of dollars, but low-income families will be lucky to get enough to cover groceries for a week. The reality is, this Republican plan will drive the vulnerable into misery and drag down the middle class for the benefit of big corporations and the rich. It’s getting worse with every rewrite.”
A web version of this fact sheet is available here.
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