Effects of the Proposed Tax Changes

The House Republicans’ tax plan would mostly lower taxes by changing individual, corporate, excise and estate provisions. The lawmakers say it would benefit everyone equally, but analyses of the plan show that people with the highest incomes would benefit more.

Those

earning

at least:

Average federal

tax rate under

the proposal

Income

quintiles

LOWEST

–

3.4

SECOND

$24,800

8.1

MIDDLE

$48,400

13.2

FOURTH

$83,300

17.0

TOP

$143,100

22.7

Highest earners

1 PERCENT

$699,000

24.5

0.1 PERCENT

$3,749,600

23.4

Tax rate reductions

Income

quintiles

2017 change in tax rate from

current law under the proposal

LOWEST

–

0.4

points

–

0.3

SECOND

MIDDLE

–

0.4

FOURTH

–

0.4

TOP

–

3.4

Highest earners

1 PERCENT

–

8.9

points

–

11.1

0.1 PERCENT

Income increases

Average

2017 federal

tax savings

2017 change in

after-tax income

under the proposal

Income

quintiles

LOWEST

$50

0.4

SECOND

$120

MIDDLE

$260

0.5

FOURTH

$410

0.5

TOP

$11,760

4.6

Highest earners

1 PERCENT

$212,660

13.4

16.9

0.1 PERCENT

$1,262,530

Tax rate reductions

Income increases

Those

earning

at least:

Average

2017 federal

tax savings

Income

quintiles

2017 change in tax rate from

current law under the proposal

2017 change in after-tax

income under the proposal

LOWEST

–

0.4

points

$50

0.4

–

0.3

0.4

SECOND

$24,800

$120

MIDDLE

$48,400

–

0.4

$260

0.5

–

0.4

0.5

FOURTH

$83,300

$410

TOP

$143,100

–

3.4

$11,760

4.6

Highest earners

1 PERCENT

$699,000

–

8.9

points

$212,660

13.4

–

11.1

16.9

0.1 PERCENT

$3,749,600

$1,262,530

Tax rate reductions

Income increases

Those

earning

at least:

Average federal

tax rate under

the proposal

Average

2017 federal

tax savings

Income

quintiles

2017 change in tax rate from

current law under the proposal

2017 change in after-tax

income under the proposal

LOWEST

–

3.4

–

0.4

points

$50

0.4

–

0.3

0.4

SECOND

$24,800

8.1

$120

MIDDLE

$48,400

13.2

–

0.4

$260

0.5

–

0.4

0.5

FOURTH

$83,300

17.0

$410

TOP

$143,100

22.7

–

3.4

$11,760

4.6

Highest earners

1 PERCENT

$699,000

24.5

–

8.9

points

$212,660

13.4

–

11.1

16.9

0.1 PERCENT

$3,749,600

23.4

$1,262,530

Tax rate reductions

Income increases

Those

earning

at least:

Average federal

tax rate under

the proposal

Average

2017 federal

tax savings

Income

quintiles

2017 change in tax rate from

current law under the proposal

2017 change in after-tax

income under the proposal

LOWEST

–

3.4

–

0.4

points

$50

0.4

–

0.3

0.4

SECOND

$24,800

8.1

$120

MIDDLE

$48,400

13.2

–

0.4

$260

0.5

–

0.4

0.5

FOURTH

$83,300

17.0

$410

TOP

$143,100

22.7

–

3.4

$11,760

4.6

Highest earners

1 PERCENT

$699,000

24.5

–

8.9

points

$212,660

13.4

–

11.1

16.9

0.1 PERCENT

$3,749,600

23.4

$1,262,530

Tax rate reductions

Income increases

Those

earning

at least:

Average federal

tax rate under

the proposal

Average

2017 federal

tax savings

Income

quintiles

2017 change in tax rate from

current law under the proposal

2017 change in after-tax

income under the proposal

LOWEST

–

3.4

–

0.4

points

$50

0.4

–

0.3

0.4

SECOND

$24,800

8.1

$120

MIDDLE

$48,400

13.2

–

0.4

$260

0.5

–

0.4

0.5

FOURTH

$83,300

17.0

$410

TOP

$143,100

22.7

–

3.4

$11,760

4.6

Highest earners

1 PERCENT

$699,000

24.5

–

8.9

points

$212,660

13.4

–

11.1

16.9

0.1 PERCENT

$3,749,600

23.4

$1,262,530