While You Watched Kavanaugh, House Republicans Passed Another Tax Cut. Here’s Who Benefits
Politics News Tax Cuts
The House just voted for a second round of tax cuts, expanding on the massive tax bill signed into law by Donald Trump last December. They’re calling it “Tax Reform 2.0,” and here’s what CNBC says about what it will accomplish:
Among other changes, the bills would make recently enacted tax cuts for individuals permanent, expand retirement and education accounts and create tax-advantaged Universal Savings Accounts.
But as Jeff Stein of the Washington Post noted, the Tax Policy Center is pointing to some very different outcomes, both in terms of how much it will add to the deficit and who it will actually benefit:
As Kavanaugh proceeds, House GOP just passed by 220-191 margin a second round of tax cuts estimated to cost $3.1 trillion in 10 years on top of $1.9 trillion cost of original tax law.
TPC estimates of how rich/poor benefit from GOP tax cut 2.0:https://t.co/DPA5jRkcPrpic.twitter.com/Li05IrMpkU
— Jeff Stein (@JStein_WaPo) September 28, 2018
As you see from the graph, the annual tax benefit form this package will overwhelmingly help the rich. You may save $100 if you’re poor, but the amount you could save in just two years if you’re a millionaire is almost enough to send someone to a four-year private university.
It’s also interesting to note who voted against it:
House clerk says two reps voting yes for GOP tax reform 2.0 include:
— Kyrsten Sinema, Democrat currently running for Senate in Arizona
— Jacky Rosen, Democrat currently running for Senate in Nevada
— Jeff Stein (@JStein_WaPo) September 28, 2018
The silver lining here is that the chances of passage in the Senate are slim due to how it affects the national deficit.