The latest round of Republican tax plans is going to cost states more than 1 trillion.
And with many states expected to lose their tax breaks this year, it will cost states 1.1 trillion that year, according to a analysis by the nonpartisan Tax Policy Center.
The report, released Thursday, finds that the Republican tax plan would create an additional 3.3 trillion to 19 trillion in tax cuts over the next decade. This would include 8.7 trillion over the next decade for corporations and 4.5 trillion over 2035.
If we put our tax structure to the people’s will, we’d really make our American tax system even more progressive in comparison to our EuropeanAmerican tax system, said Bob Green, chief economic adviser at the Tax Policy Center.
The plan would benefit nearly 1 of the U.S. population, 9.9 trillion, with a cut in the estate tax and a 5.8 tax for multinational companies, the report found. The plan would also add 2.7 trillion over 10 years.
By 2021, the plan would cost a combined 6.2 trillion, and increase the deficit by 1 trillion by 2035 by 2040, it would be 16.2 trillion.
However, the report notes that the plan may be unpopular among middle-income Americans – the population who earn less than 33,000 a year.
The number of states which see no tax hike next year is small, said Richard Cohen, director of the Tax Policy Center.
The plan is estimated to be worth 1.4 trillion because it would allow states to pass additional taxes on their own to generate revenue for their states.
Under the Republican plans, the top rate would have risen for the bottom 50 of taxpayers to 20 – about 10,000 per household.
Under the Trump-GOP legislation, the top rate would have dropped for the top 1, the lowest 40 of taxpayers to 15, and the highest 10, to 20.
The bill is expected to cost states another 1.5 trillion over the next 10 federal years, including 10.5 trillion on top of the current 0.1 tax cut.
There is some consensus that the plan would reduce revenue for states a nonpartisan analysis found that the biggest tax increase would come from the wealthiest 2 of states.
The Tax Policy Center said Thursday that the
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