Newly published data shows that the new Senate GOP tax plan isn’t much better than the House GOP tax plan for the middle-class, small businesses, and lower-income Americans. The Institute on Taxation and Economic Policy analysis (https://itep.org/senatetaxplan/) shows that on average, the top 5% of Americans will receive around 50% of the tax cuts.
“Despite the claims of Senate leadership that this plan is somehow good for middle-class Americans, the data shows this new tax plan is built to help out the wealthiest Americans and large corporations,” said David Lujan, Director of The Arizona Center for Economic Progress. “Much like the House GOP tax plan, the Senate plan does almost nothing for everyday Arizonans and small business owners.”
In Arizona in 2019, households making $210,410 or more will make up only about 5% of the population, but they will receive almost 50% of the total share of the tax cuts – by far the greatest share of the total tax cuts. (see Tables 1 and 2 at end of this release). On the flip side of that, the largest share of people seeing tax increases of some kind will come from middle-income households. For example, 11% of Arizona taxpayers making between $30,950 and $83,220 will see a tax increase by 2027. These are the working families and small business owners who make the economy work. The Senate tax plan punishes them.
“In the coming days I’m sure we’ll hear a lot of spin from people supporting this plan, but it’s painfully clear that this plan is focused on one thing: tax cuts for the nation’s highest earning households and the largest corporations. In other words, those who need tax breaks the least,” continued Lujan. “But to add insult to injury, similar to the House GOP plan, the Senate plan will pay for these cuts by driving up the national deficit, cutting critical services, and shifting more of the burden on to middle and lower-income Americans.”
To read the entire report or get more details about Arizona, go to https://itep.org/senatetaxplan/.
The Arizona Center for Economic Progress
3030 N. 3rd St., Suite 650
Phoenix, AZ 85012