The tax plan proposed by House Republicans would cost $191 billion over the next decade, according to the Tax Foundation. The analysis by the Tax Foundation also suggests that the economic activity created through the bill would provide a significant amount of revenue. The bill’s revenue will provide 92% of the cost of the bill, according to the report.
The Tax Foundation further states that the tax proposal will raise the country’s GDP by 9%.
Everyone will benefit from the economic growth, according to the analysis, with the wealthy benefiting the most from a 13% gain in income after taxes. Tax Foundation is a conservative-leaning organization.
The report is likely to be called an “exaggeration,” according to the estimates. Dynamic scoring plays a big part in the report that states the tax bill will cost $2.4 trillion over a period of 10 years. Much of the costs are one-time costs, according to the foundation.
Wage growth of 7.7% is being reported as is the creation of 1.7 million jobs.
The plan proposed by Republicans calls for $8 trillion in tax cuts. All itemized deductions would be eliminated under the proposal to raise $2.3 trillion. Mortgage interest and charitable donation deductions will remain. A tax break for businesses will be eliminated to raise $1.1 trillion and a tax on imports will raise $1.1 trillion.
Businesses will receive larger tax cuts under the bill rather than taxpayers.
Top 1% of earner will see their income rise by double digits, while the average earner will see their after-tax income rise by 8.4% – 9.3%.