The GOP tax bill would give huge cuts to businesses — and much less for average Americans

business news


  • The House GOP released their long-awaited tax reform package on Thursday.
  • The Committee for a Responsible Federal Budget found that of the $1.5 trillion in net direct benefits, businesses would receive $1 trillion and individuals would receive $500 billion.
  • The analysis said that of the $500 billion in benefits to individuals, nearly $200 billion of that would come from changes to the estate tax.

The big winners from the House GOP tax reform bill released Thursday would likely be businesses and wealthy heirs, according to an early analysis of its provisions.

The Committee for a Responsible Federal Budget released a summary of the Tax Cuts and Jobs Act (TCJA), soon after its release on Thursday, breaking down who would get their tax bill reduced and by how much.

According to the CRFB’s summary of the bill’s total direct effects over 10 years, most of the benefits would go to businesses.

Those firms would see their statutory tax rates drop to 20% from the current 35% under the plan, and they could expense business investment immediately. According to the analysis, businesses would receive $2.2 trillion total in tax cuts and benefits while losing roughly $1.2 trillion in closed loopholes and deductions.

Comparatively, individuals would see benefits of $3.3 trillion from the updated tax brackets and increased standard deduction. That massive benefit, however, would be offset by $3 trillion in lost deductions, exemptions, and credits. So the total direct benefit to average Americans would be about $300 billion over 10 years. The analysis doesn’t account for which income levels and groups would benefit more or less than others.

The tax bill, according to CRFB, would also be a huge boon for heirs of large estates. The TCJA would increase the threshold for the estate tax to more than $11 million immediately and phase the tax out after six years. The total benefit from the repeal: $172 billion.

Those figures don’t include benefits that could be passed down from businesses in the form of higher wages or increased economic growth, a source of debate among economists.

SEE ALSO: The GOP finally unveiled its massive tax plan that proposes a sweeping overhaul to the system

Join the conversation about this story »

NOW WATCH: Meet the three women who married Donald Trump

Комментариев нет

Добавить комментарий

business news
Bitcoin’s rough patch looks like the Nasdaq during the tech bubble — except it’s moving 15 times faster

Bitcoin fell as much as 70% from its mid-December high through its recent early-February low. The cryptocurrency’s price chart mirrors that of the Nasdaq Composite Index during the dotcom bubble era, but there’s a catch. Historical fluctuations in the Nasdaq should provide a template for how bitcoin will trade going …

business news
‘China is not afraid’: China strikes back at Trump with new tariffs as trade fight escalates

President Donald Trump announced new tariffs on $50 billion worth of Chinese goods on Thursday. Chinese officials strongly condemned the move. “China does not want a trade war with anyone,” said the Chinese Embassy in Washington, DC. “But China is not afraid of and will not recoil from a trade …

business news
Bill Ackman reportedly cashes out of his Nike investment after making about $100 million

Pershing Square CEO Bill Ackman has cashed out his stake in Nike after making about $100 million, according to Dow Jones.  Ackman recently exited a years-long bet in Herbalife that reportedly cost him hundreds of millions of dollars.  The apparel maker is set to report earnings after the market close …