A tax-reform proposal offered by Republicans in the House of Representatives would lead to the creation of 1.7 million jobs, raise wages by 7.7%, and boost gross domestic product by 9%, according to a report by The Tax Foundation, a conservative-leaning organization.
That cost of the proposal, if implemented, would be far less than original estimates, according to the report. The raw cost would be about $2.4 trillion but would sum out at $191 billion after accounting for all economic benefits, the report says. The analysis takes into account cuts in the corporate tax rate and expanded business investment incentives.
Among the measures in the Republicans’ proposal, tax cuts would total some $8 trillion, while a proposal to cut itemized deductions — excepting a few key ones such as mortgage interest and charitable contributions — would raise $2.3 trillion, according to the analysis. Also, eliminating a tax break for business expenses could raise $1.1 trillion, the report said.
Republican lawmakers also have proposed new individual income-tax brackets, including a top rate of 33% for incomes above $210,800 and a 25% rate for income below that level down to $50,400.