The Democrats will not be happy about a new report that revealed that Americans in every congressional district in the country are benefiting from President Trump’s tax-cut package.
According to the Heritage Foundation’s report, that was released Monday, 89 percent of Americans will see either a tax cut or no change.
Approximately 4 million more low-income filers will not pay any income taxes in 2018.advertisement - story continues below
The report by Kevin Dayaratna, Parker Sheppard and Adam Michel said the Tax Cuts and Jobs Act cut taxes for average American households in every state and every congressional district.”
“The reform will produce larger incomes, more jobs, more investment, and, ultimately, more economic opportunity. In 2018, taxpayers will save an average of $1,400, and married couples with two children will save $2,917.
The law reduced federal income tax rates, boosted the standard deduction, doubled the child tax credit, repealed the personal and dependent exemptions, created a new business deduction, and capped the deduction for state and local taxes.
Significantly, it lowers the corporate income tax rate permanently from 35 percent to 21 percent, beginning this year.advertisement - story continues below
Over the next 10 years, the report said, “because of a larger economy driven by tax cuts and the tax cuts themselves, the typical American household will benefit from more than $26,000 more in take-home pay, or $44,697 for a family of four.”
Calling it “one of the most significant policy reforms passed by Congress in recent times,” the report said the tax cuts also are inducing changes in wages, employment and investment.
The benefits could be even greater if the tax cuts are made permanent, the report said.
The report detailed the significant range in the size of the average tax cut, due to differences in state income taxes, from just above $395 in New York’s 15th district to $3,332 in California’s 18th.advertisement - story continues below
The cuts, measured on a percentage bases, benefit lower-income districts more than districts with large incomes in bigger population centers.
Tying all the details together, the report said, the average filer’s “take-home pay gains over the course of 10 years are quite substantial, ranging from $7,469 in NY-15 to $60,108 in CA-18.”
“For married couples with two children these values are even higher, ranging from $11,429 to $99,010.”
The report said the estimates “assume that the tax cuts expire in 2025 and that Washington continues to run large and unsustainable deficits.’
“Making the TCJA permanent and reforming spending to align with projected revenues could significantly increase our estimates of the changes in gross domestic product, income, investment, and wages,” the report said.
“Repealing the TCJA, on the other hand, would undo its economic gains.”
Democratic Minority Leader Nancy Pelosi told a town hall meeting in April that her first priority should Democrats win back the house in November is to repeal and “replace” the GOP tax bill that passed last December.
Pelosi pledged to discard the popular bill, which prompted 24 major American corporations to boost the minimum wage, share profits, give thousands of employees a bonus, and in some cases move their production operations back to the United States from overseas.
Should the Democrats take back the House and Senate, there is no doubt they will repeal the tax plan, if for no other reason than to oppose President Trump, regardless of the harm it will do to the economy and the American people.