By Mike DeBonis / AxiosThe Trump administration is expected to announce the next phase of its tax overhaul Tuesday, and some lawmakers say the plan will give the wealthiest Americans more tax breaks than before.
The tax overhaul, first unveiled in September, would cut the corporate tax rate to 20% from 35% and the individual rate to 25% from 39.6%.
It also would make the top individual rate 35% from 28%.
The GOP plan would also slash the individual mandate, a requirement that most people buy health insurance or pay a penalty.
The Republican plan would make it so that anyone with a job earning more than $250,000 would pay a higher rate.
House Ways and Means Committee Chairman Kevin Brady Kevin Patrick BradyHouse passes bipartisan immigration bill The Hill’s Morning Report — Sponsored by United Against Nuclear Iran — House passes Trump nominee tax bill The House passes bipartisan border security bill MORE (R-Texas) told Axios Tuesday morning that the GOP plan is the most progressive tax reform in history.
“The Republican plan is more progressive than any other, and it’s not just in the overall economy, it’s also in the taxes, in the subsidies, in all of the ways in which it’s going to benefit the middle class and the poor,” Brady said.
He added that the Trump administration’s decision to repeal the Obamacare tax penalties has not hurt the plan.
“They’re a tax relief for people that are really struggling and don’t want to pay taxes at all,” Brady added.
“It’s a relief for the middle-class, a relief to people who are struggling to make ends meet.”
The nonpartisan Tax Policy Center estimated that the tax plan would give the top 1% of Americans a tax cut worth $2.4 trillion over the next decade.
“We don’t know the details, but what we do know is that the Republican tax plan is not only the most generous in history, it is also the most popular,” the group said in a report last week.
“By 2025, the top tax rate will be lower than in any of the previous four presidential tax plans and will remain lower than the lowest tax rate in the history of the nation.”
The Trump tax plan has been criticized for offering too little in the way of relief for middle- and lower-income Americans, which is why Brady said it is important to hear the details of the plan before making a final decision on it.
“What we’re trying to do is to get a good estimate of what the final number would be.
But what we have learned from all of these other tax plans is that they all do this very, very little to help the middle and lower classes,” Brady told Axio.
The Tax Policy center estimated that if the Trump plan were to be implemented, it would increase the national debt by $1.5 trillion over a decade.
The group said it also expects the GOP bill to reduce the number of millionaires by more than 200,000, and the number with adjusted gross income above $250 million to 5.5 million, compared with the current law.
It also expects that the bill would reduce the cost of the health care system by $4 trillion.