The Republican tax reform plans would raise the federal deficit by $1.98 trillion over the course of a decade, significantly more than the House’s Joint Committee on Taxation estimates and far more than what is allowed under GOP budget rules approved last week, according to a new study by the conservative Tax Foundation.
The recently approved budget rules only allow for growing the deficit by $1.5 trillion over 10 years.
Sen. Bob Corker (R-Tenn.) said he would not vote for a bill that raised the deficit at all.
The Tax Foundation estimates hundreds of millions more in lost tax revenue and a net loss of $989 billion to the economy, with economic growth only paying for a third of its cost. However, the foundation says the bill would lead to 3.9 percent higher growth in the long-term and 3.1 percent higher wages.
The Hill added:
The foundation also found that, before growth effects are taken into account, the top 1 percent of earners would get 3.5 times the proportion of tax benefits as everyone else.
In 2027, it found, all taxpayers would see a 0.9 percent increase in their post-tax income, while the top 1 percent of earners would see a 3.3 percent increase in their already-larger after-tax income.
That figure, however, did not take economic growth into account, which the foundation estimates would boost post-tax income by 4.4 percent, but only 3.9 percent for the wealthiest. That model assumes that labor would accrue 70 percent of the benefit from corporate tax breaks, a controversial assumption that other economists have called into question.