Finance

New analysis: Majority would benefit from GOP tax plan, but some would see hikes

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A new analysis from the Joint Committee on Taxation found that some 61 percent would see their tax bill fall in the first year of the Republican tax plan, while 8.3 percent would see a hike.

Almost a third of taxpayers would not see a change of more than $100 in their favor or against them.

According to the analysis, which was requested by Rep. Richard Neal (Mass.), the ranking Democrat on the House Ways and Means Committee, those differences would change over time. 

{mosads}By 2027, Only 46.2 percent of taxpayers would have a lower tax bill, and 19.5 percent would see their bills go up.

A significant portion of the middle class would see their taxes rise over time.

By 2027, for example, 22.5 percent of those making $40,000 to $50,000 per year would see taxes go up by more than $100, as would 23.7 percent of those making $50,000 to $75,000 and 25.9 percent of those earning between $75,000 and $100,000.

The wealthy would see the greatest changes from the tax plan. In 2027, 57 percent of those earning more than $1 million would have lower taxes, and 42.4 percent would have higher taxes.

Whether a household with income above $1 million would see their tax bill rise or fall would depend on a number of factors, including the household’s use of various deductibles that would be eliminated or curbed by the GOP plan.

Tags Joint Committee on Taxation Richard Neal Tax reform

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