GOP leaders are urging Republicans to pass tax cuts without a big tax hike for the wealthy.
The House GOP’s budget plan would slash tax rates for those making more than $200,000 and $1 million, as well as those making less than $250,000.
It would also reduce corporate taxes and impose a 10 percent income tax on high-earners and a 10.75 percent surtax on the middle class.
The plan also would raise the estate tax rate from 35 percent to 39.6 percent and would repeal a $10,000 income tax credit for people earning over $1.9 million.
In addition, the plan would reduce the standard deduction to $12,500 for married couples filing jointly and $10.4 million for individuals making over $50,000 a year.
The budget proposal would raise taxes on the wealthy even more than the House GOP plan, according to a new analysis from the Tax Policy Center.
The GOP plan would impose a $1,000 tax on $10 million in income, $1 in interest, and $500 on $100,000 of debt.
It also would lower the top marginal rate from 39.1 percent to 37.9 percent, but would leave it higher than the highest tax rate in the OECD, the Organization for Economic Cooperation and Development.
The GOP tax plan would cut tax rates by $1 trillion over 10 years, according the Tax Foundation, and would lead to a $3 trillion in economic growth in 2025.
But the Republican plan would do little to address the country’s widening wealth gap.
The GOP plan proposes to eliminate the estate and other tax advantages for heirs, who are not taxed at the higher rate.
The Tax Foundation analysis also shows that repealing the child tax credit, which allows parents to deduct up to $1 billion of child care expenses, would increase the national deficit by $200 billion over 10.5 years, even though the plan does not propose any new tax cuts.
It says the tax plan is expected to add about $300 billion to the national debt over 10,5 years.
As the Tax Club report notes, the tax cuts that would go to the wealthy would raise revenues by $3.6 trillion over the next 10 years but would not substantially reduce deficits.
The Tax Foundation’s analysis suggests that Republicans could potentially raise $6 trillion in revenue from eliminating the child credit and eliminating the mortgage interest deduction, but that the tax breaks would increase deficits by more than a trillion dollars.
The House GOP budget would also increase taxes on households earning more than about $1m, including those making $1 to $15 million, by nearly $1 and $3 for individuals, and by more in higher-earning households.
And, the House budget would increase taxes in high-income households by $4,000 for those earning more.
The tax plan also proposes to raise the corporate income tax rate, the estate, and the personal exemption.
It also proposes raising the estate Tax Rate to the highest rate in Europe, the Tax and Budget blog reports.
Republicans want to increase the estate taxes to $5.45 million, which would raise $1 per person, or about $200 per person per year, for those with $5 million or more.
The tax plan contains some of the most ambitious tax cuts in decades.
But the Tax Center analysis shows that eliminating all of the tax credits for the middle-class, the ones that allow the wealthiest Americans to avoid paying higher taxes, would cost the country nearly $300 trillion over a decade.
In addition, repealing the tax break for inherited wealth would raise about $7 trillion in taxes over 10 to 20 years, but could add up to about $3,000 in revenue, according a recent analysis from Tax Policy Institute.
Taxpayers would still be hit by a variety of taxes.
Under the House Republican plan, taxpayers would pay a total of $1 on their taxes, but it would only apply to the first $9,000 after estate taxes, which is where the vast majority of tax revenue goes.
The top tax rate would be lowered to 28 percent, and all income-tax rates would be indexed to inflation.
The $2 trillion in tax revenue from repealing the estate income tax and eliminating all other tax breaks is estimated to add up over a 20-year period, according with the Taxpayers Alliance, a progressive advocacy group.
The Republican plan does little to fix our long-term budget deficits.
Taxpayers are not getting the relief they need to address long-standing and complex problems, according Republicans.
Democrats and other groups say the plan fails to address any of the nation’s pressing issues, including education and health care.
We cannot have a health care system in which millions of Americans cannot access care because they have to pay their medical bills on time, and our infrastructure is not strong enough to provide high-quality care for everyone,” said House Minority Leader Nancy Pelosi, D-Calif. “This