A new study concluded that the Republican tax plan as it stands would result in a loss of up to $2.5 trillion over a 10-year span.
The Urban-Brookings Tax Policy Center, who conducted the study, found that in the second decade of the tax plan, revenue would fall by $3.4 trillion.
The Center found this would be the case even after economic growth was factored into the projections.
Conservatives attacked the Center’s initial analysis of the plan last month, believing economic growth would improve the figure. But even with economic growth, the findings hardly differed.
Read the full report on the Tax Policy Center website.
“While the Framework’s tax rate cuts would generate new economic activity at first, those growth effects would be washed out in a few years by the effects of higher budget deficits,” the Center said in a blog post regarding the report. “Because the federal government would have to borrow more to finance the tax cuts, less money would be available for private investment.
For a political party that is apparently so focused on balancing the budget and zeroing the nation’s debt, this tax plan seems like an odd approach by the GOP to meet those ends, though the White House insists the plan will result in a 3-5 percent growth in GDP. This claim has been disputed by economists.
The finding adds to the growing criticism of the plan from both parties, as many have already found that it seems to benefit the rich more than the average American.
According to the Center’s report, under the proposed tax plan, the bottom 95 percent of taxpayers would see an increase in their after-tax income of only 1.2 percent or less, while the top 1 percent earners would see an 8.5 percent increase.
Under the obscene GOP tax plan, the top 0.1% of households would receive average tax cuts of $507k apiece in 2018. https://t.co/PlGdzaeQoj
— Rep. Pramila Jayapal (@RepJayapal) October 27, 2017