Tuesday's election results, unfavorable nonpartisan analyses complicate the GOP's tax plans


The Senate is scheduled to release its tax overhaul package on Thursday, and Rep. Kevin Brady (R-Texas) says he will release an updated version of the House bill, but Republicans on Wednesday couldn't agree whether Tuesday's electoral beating would help focus congressional Republicans on passing a tax bill or hurt the effort. Complicating their political calculus are a series of nonpartisan analyses of the House tax plan that find some middle class families would actually pay more in taxes next year, and the number of beneficiaries would shrink dramatically by 2017.
An analysis released Wednesday by the nonpartisan Tax Policy Center, for example, found that 9 percent of middle income taxpayers (earning $48,600 to $86,100 a year) would get a tax hike next year and 31 percent of that bracket would face higher taxes in a decade. A 76 percent majority of all U.S. taxpayers would get a tax cut in 2018, with middle class families averaging a $800 boost, the Tax Policy Center found, but "the largest cuts, in dollars and as a percentage of after-tax income, would accrue to higher-income households." The Joint Committee on Taxation, the nonpartisan tax analysis organ for Congress, predicted similar results earlier this week.
Republicans are still tinkering with their plans, but the "changes made to the House bill since it was released last week have largely benefited corporations at the expense of individuals," The Washington Post reports. One change approved Monday to eliminate a proposed corporate tax blew a $74 billion hold in the plan, pushing it up to a $1.57 trillion addition to the federal deficit over the next decade; to pass the Senate with a bare majority, the bill can't raise the deficit by more than $1.5 trillion.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
June 22 editorial cartoons
Cartoons Sunday’s political cartoons include a SpaceX flight, Bibi pulling Donald Trump toward war, and an ICE agent looking like a bank robber
-
5 bunker-busting cartoons about the Israel-Iran war
Cartoons Political cartoonists take on Iran waiting for Pete Hegseth to leak war plans and Donald Trump's wish for a Nobel prize
-
Malaysia's delicious food and glorious beaches
The Week Recommends From 'colourful' George Town to the 'jungled interior' of Langkawi, Malaysia is incredibly diverse
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores