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 TrumpNew EPA rule would expand Trump officials' powers to reject FOIA requests Democratic senator introduces bill to ban gun silencers Democrats: Ex-Commerce aide said Ross asked him to examine adding census citizenship question 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 PolisGOP gun rights activist arrested for flashing handgun at U.S. marshal First openly gay man elected governor marks Pride with flag at state capitol Colorado passes more than billion in marijuana revenue 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Heritage estimated that if the tax law were repealed the average household would lose almost $27,000 in take-home pay from 2020 to 2029 and the average family of four would lose almost $46,000 during the same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 SerranoJosé Serrano says he has Parkinson's, will not seek reelection Congress must not be fooled by the effort to block citizenship question Five things to know about Ocasio-Cortez’s 'Green New Deal' MORE (D), to almost $60,000 in California's 18th Congressional District, in the Silicon Valley area, represented by Rep. Anna EshooAnna Georges EshooPro-trade group targets Democratic leadership in push for new NAFTA House Democrats press leaders to start Trump impeachment Hillicon Valley: Court rejects Chelsea Manning appeal | Facebook hires lawyer who helped write Patriot Act | Senator seeks details on Russian interference in Florida | Amazon hiring alcohol lobbyist | Ex-Obama aide lobbying for Sprint, T-Mobile merger 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.