A Conservative Tax Cut Would Cost $15,000 More in Taxes and $15 Million More in Social Security Benefits by 2025 article A tax cut of $15 million annually would mean $15.5 trillion more in taxes and $5.2 trillion more than in benefits in 2025, according to the nonpartisan Tax Policy Center.
The new analysis comes from a nonpartisan Congressional Budget Office report.
A cut of the kind Republicans are pushing would cost $1.4 trillion in 2025 and $3.9 trillion over the next decade, according a recent analysis by the Center on Budget and Policy Priorities.
The Tax Policy Centre estimates that the bill would cost the government $1,800 per family, $400 per child and $200 per adult, based on a hypothetical family of four.
The report also says that $3,000 per child, $600 per child or $300 per adult would be a “significant increase” over current tax policy.
Republicans say the bill is needed to balance the budget, but the Tax Policy centre’s analysis says that’s not true.
The center says that under current law, if the bill had been passed without changes, the deficit would have grown by $1 trillion over 10 years.
“The current budget deficit is not a result of the $1trillion in tax cuts that have been enacted.
It is a result, rather, of the cumulative effects of $1Trillion in additional taxes and the additional burden of rising debt,” the report says.
“For a $15trillion cut to the federal budget, we would get an additional $8trillion over the 10 years.”
But the report cautions that there’s a risk that the GOP tax plan would exacerbate the country’s long-term debt problems.
“In particular, if current trends continue, we could see the fiscal gap between the rich and everyone else grow to as much as a trillion dollars over the decade, as opposed to just $1 billion,” the center says.
The tax cut bill passed last month includes the elimination of the estate tax, a popular and bipartisan tax on inherited wealth.
It also includes the first tax credit for college tuition.
The GOP proposal would also repeal the corporate tax, reduce the top marginal rate from 35 percent to 20 percent, and cut the corporate income tax rate to 25 percent from 39.6 percent.
In a recent interview with CNBC, House Speaker Paul Ryan said he supports the tax cuts in the tax bill, but wants to see the cuts extended to other popular programs.
“We have to do it for the middle class, we have to get rid of the Obamacare, we can’t keep the government shut down,” he said.
The House GOP plan also includes a proposal to repeal the estate and alternative minimum tax, but that measure was also dropped from the House version of the bill last week.
The plan would also eliminate the state and local tax deduction, which is worth $4.8 trillion in 2019, $5 trillion in 2027 and $6.2 billion in 2031.
The CBO also says the bill will result in $6,000 in additional government debt over 10 or 20 years.
The nonpartisan Tax Foundation, which provides nonpartisan analysis of federal tax policy, says the plan would add $1 in interest costs for every $1 the bill adds in revenue.
It estimates that if the tax plan were to pass, it would add an additional 2.9 percent to the national debt over the first decade of the 2032 fiscal year, with an additional 1.5 percent added each year thereafter.
The deficit would then grow to $19.6 trillion by 2032, with $4 trillion of that in interest payments.