A tax overhaul is a win-win for the nation’s most vulnerable people and businesses, experts said Tuesday, calling the GOP’s plan a win for the wealthy and a win against the GOP health care overhaul.
The Republican tax plan, known as the American Health Care Act, was released Tuesday and promises to be a boon to the rich and a boon for the middle class.
But the proposal faces challenges in the form of taxes on high-income earners and a provision requiring employers to provide health insurance coverage for workers.
The legislation includes the biggest cuts in taxes for the top 1 percent of earners in recent history, according to the Tax Policy Center, a nonpartisan think tank that analyzes economic data.
And it will give tax breaks to the wealthiest Americans while slashing taxes for other groups, including middle-class families.
The Tax Policy Centre says the bill would cost the federal government $1.2 trillion over a decade, or nearly a third of the $2.5 trillion cost of the health care law.
It estimates the bill will raise $3,500 for every family in the country.
The nonpartisan Joint Committee on Taxation estimates the tax cuts for the rich will amount to $5,400 for every household.
The top 10 percent of households will receive a net tax cut of $2,200, according the Tax Foundation.
The Joint Committee said the House and Senate bills would be “unlikely to achieve their full benefits.”
In addition to the tax cut, the House bill will include a $1,000 child tax credit and the Senate bill will increase the child tax benefit from $1 million to $2 million.
The Senate plan would allow married couples to deduct their state and local income taxes from their taxes and eliminate the estate tax.
Both proposals would require a change to the U.S. Constitution, which would need to be approved by the Senate and House.