Republican Budget Resolution Cuts HealthCare and In-Trade Lowers Taxes
A GOP budget resolution that just passed the House includes $1.8 trillion in healthcare cuts and $1.5 trillion in tax cuts over a ten year period.
To understand why this is important, we have to talk about what a budget resolution is.
Essentially a budget resolution is like an outline of a budget that can include rule changes. Its like a game plan and wishlist that, if approved, can be turned into legalization.
Thus, the events can be understood as: House Republicans passed a Senate approved outline for tax reform that includes cuts to healthcare spending and cuts to taxes. That outline of tax reform can now be turned into legislation. Specifically, it can be fast tracked as the resolution was written in a way that allows a budget to passed with only 51 votes (50 Republicans plus Pence).
Thus, the end result is that the GOP is very likely to put forth a tax plan that cuts spending and taxes in the style of this resolution.
Ironically or not, this reduced spending ($1.8 trillion for healthcare and more elsewhere) is offset by nearly equal parts tax breaks (the majority of which go to the 1%).
The budget resolution, which was adopted by the US Senate last week and by the House of Representatives on Thursday, changes the rules to allow for an actual tax plan to pass. Republicans will likely move to pass the legislation as soon as next week.
“Taxpayers in the bottom 95 percent of the income distribution would see average after-tax incomes increase between 0.5 and 1.2 percent,” the TPC’s report said. “Taxpayers in the top 1 percent (incomes above $730,000), would receive about 50 percent of the total tax benefit; their after-tax income would increase an average of 8.5 percent.”
In other words. Trump and the GOP are set to redistribute the wealth to the richest Americans and slash the safety net. See Tax Policy Center’s analysis: A PRELIMINARY ANALYSIS OF THE UNIFIED FRAMEWORK
NOTE: While most see their tax rates fall, those in the 80th and 95th percentile will see their tax burden increase. Only a fraction of the top 1% will get the full benefit of the tax breaks. Meanwhile, remember, the other 80% will have their tax breaks offset by the trillions lost in social spending and other assistance.
NOTE: Keep in mind Republicans project economic growth and trickle down to offset the trillions of growth in deficit and trillions in cuts to assistance. In other words, Republicans are factoring in dynamic scoring.
- Trump’s tax plan just got its first brutal review showing how it would benefit rich Americans but almost no one else
- NEW:A PRELIMINARY ANALYSIS OF THE UNIFIED FRAMEWORK OLD:Research report An Analysis of Donald Trump’s Revised Tax Plan