The plan also increases the federal deficit. That no longer matters to Republicans in Congress, but whopping tax cuts for the wealthy do.
Due to how the plan accounts for inflation, benefits for taxpayers who earn their income from work, rather than investments, would erode over time. Additionally, the bill creates, but then eliminates five years later, a $300 non-child dependent credit that benefits low- and middle-income families.
More specifically, the 10-year outlook for the plan reveals that by 2027, the top 1 percent of households in Arkansas would see their share of the tax cut increase from 29 percent in year one to 44 percent by 2027, for an average cut of $49,330. Middle-income taxpayers’ average tax cut in Arkansas would erode from $610 in the first year to $490 in 2027, and the poorest 20 percent’s average tax cut would stay nearly stagnant, going from just $90 initially to $130 in 2027.