This legislation significantly reduces taxes for the affluent and corporations, increases the deficit, and reduces healthcare for numerous Americans,” a critic declared.
“Despite long-standing Republican assertions on Capitol Hill, including leadership in both houses, about the need to diminish national debt, the GOP is currently advancing a tax proposal. This plan not only finances handouts to the wealthy by dismantling programs essential to the middle class but also proposes to increase the U.S. deficit by $3.8 trillion.
The nation’s debt stands at $36.2 trillion. An analysis from the Joint Committee on Taxation (JCT) indicated on Tuesday that the Republican proposal would lead to a $3.8 trillion expense by 2034, which is about 1.1% of the GDP.
The JCT report highlighted that certain assessments—like the effects of changes to small-value shipments for businesses and adjustments to Medicare coverage—will be evaluated by the Congressional Budget Office.
The release from the JCT aligns with a crucial gathering in the U.S. House of Representatives. As reported by Politico:
The updated projection shared Tuesday afternoon has slightly increased from an earlier $3.7 trillion estimate. This disclosure comes as the tax-writing Ways and Means Committee starts its formal discussion on the proposal. Further amendments could emerge there, and later as Republicans plan to move the legislation to the House floor.
[…]
The GOP’s budget in the House suggests that the extent of their tax reductions depends on simultaneous spending cuts, with Republicans aiming to counterbalance $4 trillion in tax cuts with $1.5 trillion in spending reductions.
Before the discussion, Amy Hanauer, executive director of the Institute on Taxation and Economic Policy (ITEP), commented, “this bill substantially lowers taxes for the wealthy and corporations, raises the deficit, and deprives healthcare from millions of Americans.”
“Irresponsible tax reductions for the affluent and new corporate tax loopholes seem to be the primary characteristics of this bill, funded by cutting our healthcare and making American communities more susceptible to floods, fires, and storms,” she emphasized. “The measures to generate revenue—which do not prevent this from being highly costly—are more about choosing winners and losers rather than enacting logical, consistent policies.”
ITEP also detailed the primary elements of the bill, including the permanent establishment of personal income tax thresholds and rates from the GOP’s 2017 Tax Cuts and Jobs Act; solidifying and enhancing the deduction for “pass-through” businesses; raising the estate tax exemption; and temporarily boosting the child tax credit, though excluding millions of children.
Similarly, Americans for Tax Fairness (ATF) outlined the bill’s components on social media Tuesday—and underscored their implications.
Maintaining the upper income tax rate reduction results in “25% of the benefits directly benefiting the top 1%,” ATF noted. “The top 1% of households, earning $2.5 million annually, would receive a $55k tax cut. The top 400 taxpayers would see an $800 MILLION tax reduction each year.”
“Since it’s mostly financed through deficits, every cent of the ‘savings’ DOGE has identified… funds tax cuts for the rich.”
The expansion of the “pass-through” deduction means “half of this benefit goes to millionaires,” ATF continued. “The top 0.1% would receive a $107,000 tax cut. The top 1% an average $22,500 tax cut. Working families would see about $40 to $50. White households receive 90% of the advantage.”
ATF also highlighted, “the plan doubles the amount wealthy heirs can inherit tax-free. A couple could inherit $30 MILLION without owing taxes. This tax relief solely benefits the wealthiest 0.2% of households. Reducing the estate tax is expected to cost $200 BILLION.”
“It also grants corporations $642 BILLION in tax reductions,” ATF stated. “The majority of corporate tax cut benefits go to CEOs, affluent shareholders, and foreign investors. One rule alone provides a $75 BILLION tax cut to Apple, Amazon, Google, Meta, and Tesla. Another promotes offshoring.”
ATF also connected these proposals to alleged cost-cutting actions by President Donald Trump’s Department of Government Efficiency (DOGE), led unofficially by Elon Musk—who is also Tesla’s CEO and the wealthiest individual globally.
“What they don’t openly admit?” the group asserted. “Since they’re funding most of this through deficits, every dollar of ‘savings’ DOGE has found by reducing budgets for [the Department of Veterans Affairs], Department of Education, and Social Security Administration is financing tax breaks for the affluent. Truly.”
While Republicans hold narrow majorities in both legislative chambers and the White House, disagreements over increasing the deficit or cuts that might upset voters in swing districts could slow or even halt their ability to pass “one big, beautiful bill” to Trump’s desk.
As reported by Common Dreams earlier Tuesday, U.S. Senator Bernie Sanders (I-Vt.) is activating organizers to rally opposition against the GOP’s burgeoning reconciliation package, concentrating on districts he has toured as part of his Fighting Oligarchy Tour.
Materials designed for distribution by organizers urge constituents to contact their representatives to vote against “a bill that cuts Medicaid, nutrition assistance, and education to fund hundreds of billions of dollars in additional tax breaks for billionaires.”
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An economic reporter, Dax Everly breaks down financial trends and their impact on Americans’ daily lives.