The Tax Policy Center has analyzed the tax proposal and who pays less and who pays more. Spoiler alert! The rich pay less and the rest pay more. While everyone would pay less in the first year (enabling the Republicans to claim that everyone gets a tax cut), the rich will pay a lot less and there is a time delay in the bill that results in tax increases for lower income people down the road.
We find the bill would reduce taxes on average for all income groups in both 2019 and 2025. In general, higher income households receive larger average tax cuts as a percentage of after-tax income, with the largest cuts as a share of income going to taxpayers in the 95th to 99th percentiles of the income distribution. On average in 2027, taxes would rise modestly for the lowest-income group, change little for middle-income groups, and decrease for higher-income groups. Compared to current law, 9 percent of taxpayers would pay more in 2019, 12 percent in 2025, and 50 percent in 2027.
Elizabeth Warren discussed with Stephen Colbert what the current Republican tax plans will do, how it will benefit the wealthy at the expense of the rest of us, and what needs to be done to stop it from passing.