A new analysis by the Congressional Budget Office (CBO) reveals that the 2017 Tax Cuts and Jobs Act, a signature Republican law, will disproportionately benefit wealthier Americans while negatively impacting lower-income individuals in the long run.
The CBO report indicates that while the tax cuts provided temporary relief across all income levels in the initial years, the benefits for lower and middle-income families will gradually phase out. By 2027, the report projects that those earning less than $40,000 annually will effectively see their tax burden increase. This is due to the expiration of several individual tax provisions in the 2017 law, such as expanded child tax credits and lower individual income tax rates.
Conversely, the wealthiest Americans, particularly those in the top 1%, will continue to reap significant benefits from the law’s permanent corporate tax cuts and other provisions designed to favor high-income earners. The analysis suggests that these benefits for the wealthy will continue to grow over time, exacerbating income inequality.
The CBO’s findings directly contradict Republican claims that the 2017 tax cuts would stimulate economic growth and benefit all Americans. The report underscores the law’s long-term regressive impact, shifting the tax burden towards lower-income households while further enriching the wealthy. The future tax landscape, according to the CBO, will see the poor paying a larger percentage of their income in taxes than they do currently, while the rich will enjoy sustained tax breaks.
find the original article here: https://www.yahoo.com/news/gop-tax-bill-cost-poor-203723948.html