Voters in every congressional district in the nation are benefiting from President Trump’s tax-cut package, according to a new report.
The Heritage Foundation’s report, released Monday, said 89 percent of Americans will see either a tax cut or no change.
Approximately 4 million more low-income filers will not pay any income taxes in 2018.
The report by Kevin Dayaratna, Parker Sheppard and Adam Michel said the Tax Cuts and Jobs Act cut taxes for average American households in every state and every congressional district.”
“The reform will produce larger incomes, more jobs, more investment, and, ultimately, more economic opportunity. In 2018, taxpayers will save an average of $1,400, and married couples with two children will save $2,917.
The law reduced federal income tax rates, boosted the standard deduction, doubled the child tax credit, repealed the personal and dependent exemptions, created a new business deduction, and capped the deduction for state and local taxes.
Significantly, it lowers the corporate income tax rate permanently from 35 percent to 21 percent, beginning this year.
Over the next 10 years, the report said, “because of a larger economy driven by tax cuts and the tax cuts themselves, the typical American household will benefit from more than $26,000 more in take-home pay, or $44,697 for a family of four.”
Calling it “one of the most significant policy reforms passed by Congress in recent times,” the report said the tax cuts also are inducing changes in wages, employment and investment.
The benefits could be even greater if the tax cuts are made permanent, the report said.
The report detailed the significant range in the size of the average tax cut, due to differences in state income taxes, from just above $395 in New York’s 15th district to $3,332 in California’s 18th.
The cuts, measured on a percentage bases, benefit lower-income districts more than districts with large incomes in bigger population centers.
Tying all the details together, the report said, the average filer’s “take-home pay gains over the course of 10 years are quite substantial, ranging from $7,469 in NY-15 to $60,108 in CA-18.”
“For married couples with two children these values are even higher, ranging from $11,429 to $99,010.”
The report said the estimates “assume that the tax cuts expire in 2025 and that Washington continues to run large and unsustainable deficits.’
“Making the TCJA permanent and reforming spending to align with projected revenues could significantly increase our estimates of the changes in gross domestic product, income, investment, and wages,” the report said.
“Repealing the TCJA, on the other hand, would undo its economic gains.”