President Donald Trump on Monday promised a tax overhaul by Christmas, even as a nonpartisan tax analysis group said the Senate package would leave half of taxpayers facing higher levies by 2027.
Speaking before a Cabinet meeting, Trump said, "We`re going to give the American people a huge tax cut for Christmas — hopefully that will be a great, big, beautiful Christmas present."
Trump spoke as the Tax Policy Center said that while all income groups would see tax reductions, on average, under the Senate bill in 2019, 9 percent of taxpayers would pay higher taxes that year than under current law. By 2027, that proportion would grow to 50 percent, largely because the legislation`s personal tax cuts expire in 2026, which Republicans did to curb budget deficits the bill would create.
The policy center, a joint operation of the liberal-leaning Urban Institute and Brookings Institution, found that low-earners would generally get smaller tax breaks than higher-income people.
In 2019, those making less than $25,000 would get an average $50 tax reduction, or 0.3 percent of their after-tax income. Middle-income earners would get average cuts of $850, while people making at least $746,000 would get average cuts of $34,000, or 2.2 percent of income.
The center also said the Senate proposal would generate enough economic growth to produce additional revenue of $169 billion over a decade. That`s far short of closing the near $1.5 trillion in red ink that Congress` nonpartisan Joint Committee on Taxation has estimated the bill would produce over that period.
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