The Republican tax plan promoted by President Trump this week as a middle-class tax cut would overwhelmingly benefit the wealthiest Americans and businesses, according to an analysis released on Friday by the nonpartisan Tax Policy Center.$10.30 a week in benefits might not go far given what the Republicans eventually hope to do to government support for health care.
The report, which is the first detailed assessment of the plan’s financial impact, found that the average tax bill for all income groups would decline by $1,600, or 2.1 percent, in 2018. The biggest decrease would go to those with incomes above $730,000, who would see their after-tax incomes rise by an average of 8.5 percent, or about $129,000.
Those in the middle quintile — with incomes averaging $66,960 — would see their after-tax income rise by 1.2 percent or about $660.
The loss of deductions would hit the upper middle class the most, and more than a third of the taxpayers who earn $150,000 to $300,000 could see their taxes go up next year, the report found. They would be hit particularly hard by the repeal of the state and local tax deduction.Everybody who itemizes their taxes in Arkansas would be hit by the factor mentioned above because Arkansas has a relatively high state income tax — 6.9 percent in the top tax bracket.
The Tax Policy Center estimates the plan will cost $2.4 trillion over a decade. Republicans are counting on a surge of economic growth to pay for their tax plan and the Tax Policy Center analysis does not account for those “dynamic” effects.Here's a chart that shows the top 1 percent would get about 80 percent of the benefits.