CNN Money published a brief analysis of the Senate Tax Bill. For calculation purposes, CNN Money used distribution tables created by the Joint Committee on Taxation.
The findings highlight that middle-income groups would see their after-tax incomes rise on average in four of the five years. But those increases are mostly modest and often less than that of the wealthiest households.
What’s more, the size of the increases for the middle class shrink over time, in part because their tax cuts in the bill would expire after 2025, and because the Senate bill would slow inflation adjustments in the tax code. That means over time more income from the middle class could be taxed at higher rates and the value of their tax benefits would decline, according to Lily Batchelder, a former chief tax counsel on the Senate Finance Committee.
Here’s how the numbers break out from year to year:
In 2019: Every income group would end up with more after-tax income. Those making between $50,000 and $75,000 would see theirs rise by 1.3%, less than the 3% jump for those making between $500,000 and $1 million, or the 2.1% bump for households making more than $1 million.
In 2021: The $200,000 to $500,000 income group would do best, seeing a 2% rise in after-tax income. But those making $40,000 to $50,000 would only see a 0.5% bump. Those making $50,000 to $75,000 again get a 1.3% increase, just a little below the 1.5% jump in after-tax incomes for those making $1 million or more.
In 2023: The $30,000 to $40,000 band would see zero change while those making less would actually see slightly less after-tax income than they would if no tax changes were made.
Groups making $40,000 or more would have a little more money after paying Uncle Sam. But those who would enjoy the biggest bumps are those making from $500,000 to $1 million (2%) and those making $200,000 to $500,000 (1.6%).
In 2025: Those making $30,000 to $40,000 would see zero change in their after-tax income while those making less would see a less than 1% drop in their after-tax incomes.
By contrast, those making between $500,000 and $1 million would see a 2% jump.
And those making $50,000 to $75,000 along with those making more than $1 million would get less of a pop, at 0.8%.
In 2027: Every group would experience drops in average after-tax income or no change, except for those at the high end. Households bringing in $500,000 or more would see tiny increases of less than 0.5%.
Considering the above, it is unclear which part of the Republican Party strategy represents the interest of American people?