The Republican Republican Party is trying to pass new taxes and expenditures, which can be a “big and beautiful legislation” but is mostly for wealthy Americans.
The Republican Party is trying to pass a big beautiful bill set to create a permanent huge tax reduction established in 2017 with the House of Representatives and the Senate.
The Republican Party said the new legislation said, “It reduces spending on family and job seekers, reduces taxes permanently and ultimately creates government work more efficiently and effectively for all Americans.”
But the biggest deduction is to ultimately go to the wealthy Americans to save hundreds of thousands of dollars a year if the tax reduction is permanently made in 2017.
After the standard deduction rate was changed to most Americans, the 2017 tax reduction and job law (TCJA) slightly lowered taxes and lowered the tax rate on most tax brackets. The bill also raised the child tax deduction from $ 1,000 to $ 2,000 per child.
The bill was a great help to wealthy Americans who had seen great savings after tax cuts. The bill has established a 20% deduction for income through a specific business known as a passing organization, including LLC and partnership. In addition, the real estate and futures tax exemptions have doubled from $ 55m per person to $ 11.2m, which helped rich families.
The bill also reduced taxes to the richest Americans at the highest part of the highest income parentheses, which means that Americans with the top 0.1 percent of Americans save much more than the middle class or the middle class.
After the tax reduction has passed, the controversial decline in the corporate tax rate, which has fallen from 35%to 21%, will be permanently done in a new bill.
Due to the reduction of the corporate tax rate, the federal government’s $ billion losses were paid. The best company in the United States from 2018 to 2021 save According to the analysis of the Korea Institute of Taxation and Economic Policy, $ 240 billion in taxes were combined after cuts.
Trump defends corporate tax reduction in 2017 and says, “It will be fantastic in intermediate income people and jobs,” suggesting that companies will use tax reduction to invest in higher wages and higher wages.
But some economists say that tax reductions have little help to help the middle class. Wage growth Slowed Two years after the reduction passed in 2019, it was humbly increased due to inflation and high demand for workers immediately after the epidemic.
Meanwhile, the company saved more expenses for stock repurchase. When the company buys its own stocks, it is a movement that benefits shareholders at any time.
Goldman Sachs last year expectation The stock repurchase will reach 1TN for the first time this year as stock repurchase increases. According to the analysis of progressive Thinktank Granderwork Collaborative, 11 top consumer products, including Procter & Gamble, Pepsico and General Mills, have sent $ 460 billion in stock since 2017.
Regarding the entire economy, economists have a lot of growth of government income. belonging Inflation and recovery from the economic downturn in the US stock market, not tax reduction in 2017.
Joseph Rosenberg, a senior researcher at the Tax Policy Center, said, “As a result of tax reductions passed in 2017, the economy has not shown a dramatic change.“ Most of our quality evidence suggests that the influence on the economy is relatively humble. ”
calculation Tax reduction says that the federal government will lose $ 46th over the next decade.
In order to offset tax reduction costs, Republican Party has cut tax reductions with major government support programs, and the Republican Party said the federal government will save 1TN. Strict work requirements for Medicaid and Supplemental Nutrition Assistance Program (SPIN) are less accessible to government medical insurance and food support.
The bill also encourages companies to use carbon -free energy sources and strengthen clean energy technology to end clean energy tax deductions passed according to the BIDEN administration.
Trump also said that his tariffs would bring a trillion dollar of $ 1 trillion in order to reduce taxes and pay off their national liabilities: estimates that Trump’s annual tariffs will bring about $ 3.1TN for the next 10 years, including retaliatory tariffs. Create.
But tariffs are also a form of tax on most US companies importing products abroad. In the last few months, companies, including Walmart and Toymaker Mattel, ultimately have to deliver some of the tariffs to consumers.
Analysis of Yale Budget Laboratory calculation If the price is higher, the tariff will make an average US consumer of $ 2,800 more. Those at the bottom of income distribution can lose $ 1,300.
The Democratic Party, along with the Senate’s ethnic minority leader, Chuck Schumer, criticized the bill as a “cruel and dangerous plan” that would harm the working class family affected by Trump’s tariffs.
Daniel Hornung, a former deputy director of BIDEN’s former National Economic Council and a senior researcher at MIT, said, “This bill cannot be financially irresponsible and regressed.” “People with less than $ 50,000 per year will actually see their income falls, and in reality, they are financing for tax reductions for most high -income people.”
