Which state will get the biggest tax cut under the new GOP tax plan?
The tax cut will save the typical taxpayer $3,000 in taxes, according to an analysis from the nonpartisan Tax Policy Center.
But a top Republican congressional aide told ABC News that the GOP plan will not save a typical household $3 million, citing a report that the Tax Policy and Budget Center found that $4 million of taxpayers will save $1 million on their tax bills under the GOP tax bill.
The tax bill is expected to cost the federal government about $1.6 trillion over the next decade.
In a sign of how much the tax bill will cost the average American family, The Hill reports that the House will pass a bill on Wednesday that would cut taxes for nearly all Americans earning between $75,000 and $125,000 by an average of $2,100.
The GOP bill would also lower the corporate tax rate from 35% to 20%, but many of the tax cuts for high earners will be only available to individuals earning more than $1 billion.
The House will also pass legislation on Thursday that would eliminate a $200 million tax break for wealthy individuals, which would cost the middle class and poor millions of dollars.
“This tax bill makes it easier for families to keep their homes and their investments,” Rep. Kevin Brady (R-Texas), the chairman of the House Ways and Means Committee, said in a statement.
“It provides relief to the middle-class and small businesses, while providing tax relief to middle-income families and to families that want to invest and hire in America.”
The Tax Policy Institute, a nonpartisan group that studies tax policy, said that “the GOP tax-cut plan would not be a major relief to working families.”
Instead, the report says, “the plan would provide tax relief for the very wealthy, including many of Trump’s own campaign donors, while the plan would raise taxes on millions of middle- and lower-income households and cut federal spending on Medicare and Medicaid.”
But the Tax Foundation, a Washington, D.C.-based tax-policy think tank, said the GOP bill “does not provide much relief to lower- and middle-wage workers,” adding that it “would still impose higher taxes on many middle- income households and lower taxes on the top 0.1% of earners.”
The group also noted that the tax cut would reduce federal spending by $3.7 trillion over 10 years.
“There’s no doubt that the bill will increase deficits by $1 trillion over a decade,” the Tax Center’s analysis said.
“But the real beneficiaries of this plan would be the wealthiest Americans, who would see their taxes go down in real dollars.”