The House bill's tax changes are higher for the wealthy. Photo: J. Scott Applewhite/AP
Almost half of net federal tax cuts under the committee-passed House tax bill would go to the top 1 percent of earners by 2027, although all income groups would see an average tax decrease under the bill, according to an analysis by the Tax Policy Center. The House plans to vote on the bill this week.
Be smart: You're going to hear different narratives over and over again this week. Democrats are going to say this bill is a giveaway to the wealthy, Republicans are going to say everyone is better off under the plan, and conservative wonks are going to (quietly) argue that cutting taxes on the wealthy and businesses is the way to boost the economy, benefiting everyone.
The impact:
While taxes on net decrease under the bill for each income group, some people's taxes will go up and some will go down within each income group. In 2027, at least 24 percent of taxpayers would pay higher taxes.
- Lowest quintile: pays $10 less in federal taxes
- Second quintile: pays $50 less in federal taxes
- Middle quintile: pays $360 less in federal taxes
- Fourth quintile: pays $840 less in federal taxes
- Top quintile: pays $4,590 less in federal taxes
- Top 1 percent: pays $62,300 less in federal taxes
- Top .1 percent: pays $320,640 less in federal taxes