The “whew” chart describes Senate’s tax plan before it went to reconciliation in December 2017. July 2017 this testimony from CBO sums up the bill best and the closest to the truth of what happened. In the first years, the number of households that will see a few extra dollars will be significant, while billions transfer to the accountants of the ultra-wealthy.
The percentage of those who are in the blue “one billion $ or more group” with household incomes over $75K, get something back. Can you hear them say “whew” to express relief?
The red group (households less than $75K) is the most difficult to mobilize and organize, but also easy to divide and conquer. Therefore they will be the ones who are paying for one economic assumption?
During the ten-year period, the corporations of America will form “C” corporations to hide their wealth and instead, take risks with their money and develop jobs and businesses.
“Under the Senate bill, the top rate on wage earners will be 42.3 percent (including income and payroll taxes). When taking into account the benefit of the new deduction for pass-through business owners, the top rate on the income of pass-through business owners will be 29.6 percent. (For more on the differences between C-corporations and pass-through businesses, read this primer.)”
Last on what would Warren Buffet do in an article from Forbes. HERE.
Planning for Tax Law 2018
The next best place to go is the Tax Policy Center created by the Urban Institute and Brookings Institution. They produced an extensive series of reports for states entitled, Prepping for the 2018 Legislative Session.
It is written in a way to help public officials and reporters explain the new rules and then help the public to understand them. It is unlikely any of them will say “hey your about to get screwed by this tax policy as it sustains classic Chicago School assumptions.
Thanks for help regarding the impact on New Yorkers of low- and moderate-income in any analysis you might find.