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Conservative Group: GOP Tax Plan Will Grow The Deficit By Nearly $2 Trillion Over 10 Years

Corporate Greed

Conservative Group: GOP Tax Plan Will Grow The Deficit By Nearly $2 Trillion Over 10 Years




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.




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