RSN Fundraising Banner
New Estimate: GOP's Second Tax Cuts Would Add $3.8 Trillion to Deficit
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=46943"><span class="small">Jeff Stein, The Washington Post</span></a>   
Friday, 14 September 2018 13:05

Stein writes: "A second round of Republican tax cuts would add an additional $3.2 trillion to the federal deficit over a decade, according to a new report released by a centrist think-tank."

Paul Ryan. (photo: Gary Cameron/Reuters)
Paul Ryan. (photo: Gary Cameron/Reuters)

New Estimate: GOP's Second Tax Cuts Would Add $3.8 Trillion to Deficit

By Jeff Stein, The Washington Post

14 September 18


second round of Republican tax cuts would add an additional $3.2 trillion to the federal deficit over a decade, according to a new report released by a centrist think-tank.

The package was taken up by a House committee on Thursday and is expected to head to a vote on the floor later this month.

The GOP’s “tax reform 2.0” would make permanent many of the individual and estate tax provisions in the tax law Republicans passed last fall, which the Congressional Budget Office said would already add about $1.9 trillion to the deficit, factoring for interest costs.

The second round of cuts would cost $631 billion before 2028 and an additional $3.15 trillion in the decade after that, according to the Tax Policy Center. The finding was somewhat larger than the $2.4 trillion cost over 10 years projected by the Tax Foundation, a conservative think-tank.

Republicans gearing up for the mid-term elections have said making the tax cuts permanent would allow Americans to keep more money in their pockets, while critics say they will do little to juice economic growth or raise workers' wages.

The bill would permanently extend cuts in the original GOP law that were originally set to expire in 2025, including the temporary reductions in individual filers’ rates, a doubling of the Child Tax Credit, and cuts to the estate tax paid by about 5,000 of the wealthiest families in America. The Senate is not expected to take up the bill this year, but it could provide a blueprint for Republicans' agenda should they retain control of Congress this November.

TPC also found that the law would give a substantially bigger tax breaks to the richest families over those in the middle class. The richest 1 percent of filers would see an average tax cut of $40,000, while those in the middle 20 percent of earners would see an average cut of $980, TPC said.

Overall, that makes it slightly less regressive than the first round of GOP tax cuts, which included corporate tax cuts that primarily helped richer Americans, according to Rosenberg.

The legislation was debated by the House Ways and Means Committee on Thursday before heading to a vote on the House floor later this month.

“We have to keep building off the momentum from last year’s tax reform,” said Rep. Kevin Brady (R-Tx.), chair of the Ways & Means Committee, at a hearing for the bill on Thursday.

The new package would make permanent a number of provisions passed last fall to raise revenue and offset the cost of the cuts, including the elimination of several itemized deductions and a new $10,000 cap on how much taxpayers can deduct off their state and local taxes.

That policy has garnered criticism from House Republicans in states like California and New Jersey, whose residents are disproportionately hit by the cap, and could complicate the bill’s passage through the lower chamber.

But it also contains several policies that primarily help richer taxpayers, including a large 20 percent deduction for owners of “pass through” entities — companies in which business income is “passed through” to an individual’s tax returns. Democrats have criticized the package as an additional round of fiscal irresponsibility to help the rich, arguing Republicans will later cite the high deficits they caused to cut Social Security and Medicare.

“That will only jeopardize the solvency of Medicare and Social Security for future generations to come,” said Rep. Ron Kind (D-Wis.) on Thursday at the committee hearing.

Email This Page your social media marketing partner


A note of caution regarding our comment sections:

For months a stream of media reports have warned of coordinated propaganda efforts targeting political websites based in the U.S., particularly in the run-up to the 2016 presidential election.

We too were alarmed at the patterns we were, and still are, seeing. It is clear that the provocateurs are far more savvy, disciplined, and purposeful than anything we have ever experienced before.

It is also clear that we still have elements of the same activity in our article discussion forums at this time.

We have hosted and encouraged reader expression since the turn of the century. The comments of our readers are the most vibrant, best-used interactive feature at Reader Supported News. Accordingly, we are strongly resistant to interrupting those services.

It is, however, important to note that in all likelihood hardened operatives are attempting to shape the dialog our community seeks to engage in.

Adapt and overcome.

Marc Ash
Founder, Reader Supported News

+4 # Porfiry 2018-09-15 10:32
The Republicans tout themselves as "fiscally responsible." In the last 40 years only one president has balanced the budget, even realized a surplus: Democrat Bill Clinton. He handed the surplus off to W. who immediately spent it all, plunged us into a deficit, and further plunged us into the Great Recession. The REAL great spenders and fiscally irresponsible are the Republicans.