At every income level, there’s a boost to after-tax income.
By and large, Americans of all incomes will benefit from the Tax Cuts & Jobs Act that House Republicans have offered.
But some by a lot more than others.
That’s according to analysis done by Ernie Tedeschi, an economist in the Obama-era Treasury Department now at Evercore ISI. He used the Open Source Policy Center tax model to score the impact.
The numbers show that at every income level, there’s a boost to after-tax income. But while those who make a million dollars or more would see a gain of nearly 7%, the gains for everyone else are more limited.
A distribution analysis from the Joint Committee on Taxation also found that at every income group, taxes would decline, with the biggest percentage-point decline for millionaires, who would see their average tax rate fall to 30.7% from 32.4%.
In a decade’s time, according to Tedeschi’s analysis, the benefit to the rich would wane a bit, though they’d still be the winners, with 4% growth. By then, every other income bracket up to $500,000 would only see a gain of up to 1%.
And at every tax bracket, there are winners and losers. Tedeschi’s model shows 91.51 million winners and 25.44 million losers after the first year.
Tedeschi’s simulation includes the biggest changes proposed by Republicans, including the changes to individual tax rates, the child tax credit, the expanded standard deductions and the limits to other deductions. One limitation — it doesn’t include the impact from corporate tax rate changes, which if implemented would show an even bigger benefit to the wealthy. The total count of taxpayers winning and losing excludes the corporate as well as the estate tax changes.