Analysis: All income groups would see tax cuts under Senate bill
All income groups on average would see their taxes go down under Senate Republicans’ tax bill, according to Congress’s tax scorekeeper.
The Joint Committee on Taxation (JCT) found in a document released Saturday evening that every income group would, on average, see tax cuts under the Senate GOP plan in 2019, 2021, 2023, 2025 and 2027.
The committee’s estimate of the distributional effects of the Senate bill contrasts with its score of the House bill. The committee estimated that the House bill would cut taxes on average for all income groups in 2019 but would increase taxes on average for those making $20,000 to $40,000 in some later years.
The House bill includes some tax credits for families that expire after five years, while the Senate plan does not include a sunset on family-related provisions.
While every income group on average would see lower taxes in the Senate bill, in each year some taxpayers would see their taxes increase.
A separate JCT document, reviewed by The Hill, found that about 9 percent of taxpayers would see an increase of at least $100 in 2019, and about 12 percent of taxpayers would see an increase of at least $100 in 2027.
Some taxpayers in all income groups would see increases. However, greater percentages of those in higher income ranges would see increases than those in lower income ranges, according to JCT.
The Senate bill cuts individual and corporate tax rates and eliminates some tax preferences in the current code, but not as many as are repealed in the House bill.
The Senate Finance Committee is scheduled to begin its markup of the bill on Monday afternoon.
– updated at 8:32 p.m.