Heritage: Repealing GOP tax law would raise taxes in every district

Heritage: Repealing GOP tax law would raise taxes in every district
© Greg Nash

Full repeal of President TrumpDonald John TrumpWhite House sued over lack of sign language interpreters at coronavirus briefings Wife blames Trump, lack of masks for husband's coronavirus death in obit: 'May Karma find you all' Trump authorizes reduced funding for National Guard coronavirus response through 2020 MORE's 2017 tax-cut law would result in lost take-home pay for the average taxpayer in every congressional district, according to a report released Wednesday by the conservative Heritage Foundation.

"If Congress were to repeal the [Tax Cuts and Jobs Act], the typical American family could lose income that could have been used toward the down payment on a home, daycare expenses, or college tuition," the Heritage analysts wrote in their report. "Moreover, repeal of the TCJA would lower after-tax incomes and limit economic opportunities for Americans across the country—not a select few."


The report comes less than three weeks before the Nov. 6 midterm elections. Some Republicans have spent time on the campaign trail touting the tax law, which lowered rates for both individuals and businesses. But there are signs it may not be a winning issue for the GOP, with an internal Republican National Committee poll last month finding that most people think the measure benefits corporations and the wealthy more than the middle class.

Some progressive groups have called for Democrats to push for repealing the tax law if they win control of the House. Rep. Jared PolisJared Schutz PolisColorado restaurant that reopened against state order closes permanently Exclusive: Poll shows pressure on vulnerable GOP senators to back state and local coronavirus aid Colorado police investigating after car drives through crowd of protestors MORE (D-Colo.), who is running for governor this year, introduced a bill in May to repeal the law in order to pay for canceling student-loan debts. But Democratic lawmakers largely have expressed interest in rolling back parts of the law that benefit wealthy individuals and corporations, rather than the whole law, and legislation to undo the measure is unlikely to be enacted while Trump is president.

Heritage estimated that if the tax law were repealed the average household would lose almost $27,000 in take-home pay from 2020 to 2029 and the average family of four would lose almost $46,000 during the same time period.

The average lost take-home pay over 10 years varies by congressional district, but in every district and state the average taxpayer would see higher taxes compared to current law, Heritage said. The think tank estimated that the average tax filer's lost take-home pay would range from $7,660 in New York’s 15th Congressional District, which includes parts of the Bronx and is represented by Rep. Jose SerranoJosé Enrique SerranoHow a progressive populist appears to have toppled Engel House Democrats include 7 million for police reform in spending bill New York City will not start counting mailed primary ballots until next week MORE (D), to almost $60,000 in California's 18th Congressional District, in the Silicon Valley area, represented by Rep. Anna EshooAnna Georges EshooThe Hill's Coronavirus Report: GoDaddy CEO Aman Bhutani says DC policymakers need to do more to support ventures and 'solo-preneurs'; Federal unemployment benefits expire as coronavirus deal-making deadlocks Democrats fear US already lost COVID-19 battle Why drug costs for older Americans should be capped in pandemic's wake MORE (D).

One of the concerns about the GOP tax law is that it's expected to add more than $1 trillion to the deficit. Heritage recommended that Congress make spending cuts rather than rolling back parts or all of the law.

"A balanced budget and lower tax rates will lead to a larger economy by both increasing the capital stock and allowing Americans to keep more of what they earn," the Heritage analysts wrote.