ALSO READTrump's massive tax cut stirs concerns on deficit, favouritism towards rich Trump pledges biggest tax cut after Senate approves $4 trillion budget Number 1 priority is to get the best deal for America Trump tax plan benefits wealthy, including Trump Can corporate America afford to walk away from President Trump?
President Donald Trump on Monday promised a tax overhaul by Christmas, even as a nonpartisan tax analysis group said the Senate package would leave half of taxpayers facing higher levies by 2027.
Trump spoke as the Tax Policy Centre said that while all income groups would see tax reductions, on average, under the Senate bill in 2019, 9 per cent of taxpayers would pay higher taxes that year than under current law.
By 2027, that proportion would grow to 50 per cent, largely because the legislation's personal tax cuts expire in 2026, which Republicans did to curb budget deficits the bill would create.
The policy centre, a joint operation of the liberal-leaning Urban Institute and Brookings Institution, found that low-earners would generally get smaller tax breaks than higher-income people.
In 2019, those making less than $25,000 would get an average $50 tax reduction, or 0.3 per cent of their after- tax income. Middle-income earners would get average cuts of $850, while people making at least $746,000 would get average cuts of $34,000, or 2.2 per cent of income.
The centre also said the Senate proposal would generate enough economic growth to produce additional revenue of $169 billion over a decade. That's far short of closing the near $1.5 trillion in red ink that Congress' nonpartisan Joint Committee on Taxation has estimated the bill would produce over that period.