The GOP Tax Cut is here

The Senate GOP has finally released its plan for massive tax cuts for the rich, what they call their healthcare bill. Other places will look at all the details, so I’ll just look at the important bits:

The 400 highest-income taxpayers alone would receive tax cuts worth about $33 billion from 2019 through 2028, which is more than the federal spending cuts from ending the Medicaid expansion in any one of 20 expansion states and the District of Columbia.  In fact, the tax cuts for the top 400 roughly equal the federal cost of maintaining the expansion in Nevada, West Virginia, Arkansas, and Alaska combined.  (See Figure 1.)  Policymakers face a stark choice: maintain the Medicaid expansion coverage for 726,000 people in these four states, or advance the pending legislation and cut taxes by millions of dollars a year for 400 households whose annual incomes average more than $300 million apiece.

I left that last bit in just for laughs–the choice for Republicans is clear: tax cuts for the ultra rich.

Households with incomes above $1 million a year would get annual tax cuts averaging more than $50,000 apiece

Meanwhile, the House-passed bill would spend about $700 billion from 2019 through 2028 on tax cuts mainly for high-income people and wealthy corporations from repealing the ACA taxes that fall on them, we estimate based on Joint Committee on Taxation data.

Now if you cut taxes by $700 billion you’re going to have to cut benefits by about the same amount. Since Republicans are back in power they no longer care about the deficit but Reconciliation rules (this bill is going through the Senate using this) means it can’t increase the deficit by much.

So, remember that this is what Republicans are for: cutting benefits to millions of who are poor or middle-class to pay for massive tax cuts for the rich and especially the ultra-rich.

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