GOP Tax Bill Hands Biggest Benefits to Top Earners, Study Says

Source: MSN/Bloomberg

(Bloomberg) -- The final Republican tax bill would lower taxes on average across the income spectrum for the first eight years, with the largest benefits going to upper earners, according to a new analysis Monday by the Urban-Brookings Tax Policy Center. Next year, the average federal tax cut would be $1,610, the study found. The bottom fifth of income-earners would get an average cut of $60 and those in the middle fifth would get a $930 cut on average, according to the analysis. The top 1 percent would get $51,140 on average, and the top 0.1 percent would get $193,380, it found.

President Donald Trump has said the tax plan’s biggest beneficiaries will be middle-income families, and the wealthiest Americans won’t gain from it.

In 2025, the average tax cut would fall to $1,570 on average. Those in the bottom fifth would get a cut of $70 and those in the middle fifth would get a cut of $910, according to the study. The top 1 percent would get $61,090 apiece and the top 0.1 percent would get $252,300, it found.

By 2027, individual breaks that are set to expire would lead to a tax increase for the bottom 60 percent of earners relative to existing law, while those on the higher end -- especially the top 1 percent -- would continue to see lower taxes, according to the analysis.

Read more: https://www.msn.com/en-us/news/politics/gop-tax-bill-hands-biggest-benefits-to-top-earners-study-says/ar-BBH09bY