A new report by 'Americans for Tax Fairness,' campaign details how the GOP tax plan systematically puts the burden of taxes on middle and lower income groups and offers unwarranted tax cuts to the wealthy.
The report by the campaign, which is made up by a coalition of over 425 organizations working towards progressive tax reform, lists "13 Terrible Things" that spell bad news as the plan will make at least 82 million middle-income people pay more taxes while cutting down the budget for several essential social programs.
The report that cites Tax Policy Center, TPC, states, "Half of all households—94 million—would pay more in taxes in 10 years. Of those, 82 million are of low- or middle-income. Two-thirds of families earning $55,000 to $93,000 will see a tax increase."
The wealthiest 1 percent will see their taxes slashed by up to 62 percent in 2027, a mighty jump from 18 percent in 2019.
Citing the Center on Budget and Policy Priorities, CBPP, the report added that corporate taxes will go down from 35 percent to 20 percent and the deficit will be filled by working families who will see a cut in healthcare programs.
"To raise revenue to pay for permanent corporate tax cuts, the plan repeals the requirement under the Affordable Care Act for individuals to have health coverage," which in turn will lead to "13 million more people being uninsured and cause a 10% increase in health insurance premiums," the report claimed.
These drastic gaps that will be created by tax cuts to the rich will most likely be filled by cutting funds needed for social programs like Social Security, Medicare, Medicaid, public education and more.
To further benefit the wealthy, the GOP plan has devised ways to make the tax cuts permanent for the wealthy and temporary for the middle and lower income groups, the report noted.
Wealthy business owners and investment firms including Donald Trump will receive "US$225 billion tax cut from the effective drop in the top tax rate for “pass-through” business income from 39.6% to 32%, along with other tax changes on pass-through income," the report added. Pass through deals include partnerships, corporations and sole proprietorships, where the owners pay taxes at the individual rate.
Offshore dodgers haven't been left behind as they'll gain substantial rebates on the money they owe.
U.S. corporations have nearly "US$ 2.6 trillion in profits stashed offshore on which they owe $750 billion in U.S. taxes," but the GOP plan offers special rebates to these big corporations, by offering discounts of over half a trillion dollars, and charge them only US$185 billion.
The estate tax has been substantially brought down, as nearly US$83 billion will be lost so that the richest of the people can inherit wealth tax-free.
"The tax now only applies to estates worth over $5.5 million per person—about 5,500 estates. Under the bill, only estates worth at least $11 million per person (about 1,800 estates) would pay the tax," the report stated.