U.S. Treasury Report Defends Tax Reform Plan

The U.S. Department of the Treasury on Monday (Dec. 11) released a one-page analysis defending the Senate’s recently passed tax cut bill, saying the plan would add $1.8 trillion of additional revenue to U.S. budget coffers over the next decade if the economy grows at an annual rate of nearly 3%.

Under both the House and Senate tax cut bills, the top corporate tax rate would decline from 35% to 20% but would be implemented at separate times and made permanent. And although Republicans have pitched the both versions of the bill as a middle -class tax cut, those tax breaks would impact about two-thirds of working families and would raise taxes on the remainder, expired in 2025.

The summary of the U.S. Treasury’s Office of Tax Policy (OTP) also reveals that the GOP tax plan pushed and supported by President Donald Trump won’t come close to paying for itself unless Congress passes additional legislation that wrings savings from so-called entitlement programs such as welfare, Medicaid and Medicare and adopts new legislation that helps small business and boosts infrastructure investment.   MORE

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