WASHINGTON _ The greatest benefit from the House Republican tax bill would go to upper-income households, according to an analysis released Monday by the nonpartisan Tax Policy Center.
Middle-income taxpayers _ those earning between $48,600 and $86,100 annually _ would receive an average tax cut of $700 next year, or about 1 percent of their after-tax income, the analysis said.
The top 20 percent of the nation's earners _ those making more than $149,400 a year _ would receive an average tax cut of $4,850, or about 1.4 percent of after-tax income.
Those top earners would also receive 60 percent of the total tax benefits under the plan. Of that, the top 1 percent of earners, defined as those making more than $730,000 a year, receive about 22 percent of the total amount of tax cuts in 2018, the Tax Policy Center said.
By contrast, middle-income earners would receive about 12 percent of the tax benefit under the plan. Those making less than $48,600 would get 3.9 percent.
By 2027, when the estate tax is fully phased out, the top 1 percent of earners would receive 48 percent of the benefit of the bill's cuts. Middle-income earners would get 8 percent of the benefit.
On average, taxes would decline across all income groups initially and for most income groups after a decade, the analysis said.
But not all taxpayers would see a cut.
At least 12 percent of filers would face higher taxes next year. In 2027, 28 percent would have higher tax bills because some provisions in the legislation, such as the new family tax credit, are temporary, the analysis said.
