Tax Relief at All Income Levels

Nonpartisan JCT Chief: “There is a tax benefit to all income categories.”
November 6, 2017 — Blog   

Today, the Ways and Means Committee began marking up H.R. 1 – the Tax Cuts and Jobs Act. The markup today showed that hard-working Americans at all income levels will see tax relief from this pro-growth legislation.

Chairman Kevin Brady (R-TX):

“According to independent estimates from the nonpartisan Tax Foundation, the Tax Cuts and Jobs Act will lead to nearly 4 percent higher GDP over the long term. … Here’s exactly what this means for the American people. It means middle-income families will see their after-tax incomes go up by an average of roughly $2,600 nationwide. From coast to coast, the era of stagnant wages is over.”

Thomas Barthold, Chief of Staff for the Nonpartisan Joint Committee on Taxation:

In 2019, our projections … would say that there is a tax benefit to all income categories as we measure them.”  

Rep. Carlos Curbelo (R-FL):

Not only do we deliver tax relief for every American family, especially those who feel like they’ve been left behind; but I think we also create more opportunities for every American family, especially younger workers who went to college based on a promise, and a promise has been broken for a lot of them. … This is an exciting opportunity we have to do something special for the American people.”

Rep. Dave Reichert (R-WA):

“This bill cuts taxes, it creates jobs, energizes this economy and results in higher wages and more money in the average worker’s paycheck. …The overall big picture is, across this country at every income level we see tax relief, jobs being created.”

Mr. Barthold:

“You redefine the tax brackets … so that provides a general tax benefit absent any other changes. There’s an increase in the standard deduction, as a stand-alone measure, also essentially creates a larger 0% tax bracket, so that would benefit all taxpayers.”

Rep. Erik Paulsen (R-MN): 

This is about helping hard-working taxpayers across the board looking to the future and getting to the restoration to prosperity, which I think today is so critical.”

Rep. Tom Rice (R-SC):

“The Washington Post … said that every income quintile in the United States would receive a tax cut under this plan and that in fact 93.5% of the taxpayers in this country would receive a tax cut. … So, we have pretty good reference material, pretty good agreement across the political spectrum … that every income quintile will receive a tax cut.” 

Rep. Diane Black (R-TN):

“That really is what our tax code reform is about: it is about helping those, especially in the middle-income, to have more money in their pocket so they can make the choices of what they will do with their money. … At the end of the day, everybody benefits by this; but particularly in our plan, it is the middle-income earners that will benefit by this plan.”

Mr. Barthold’s remarks reminded the Committee why delivering this tax relief to all hardworking Americans is so important:

“There has not been substantial growth in median family income over the past two decades.”

The Ways and Means Committee will continue to mark up the Tax Cuts and Jobs Act tomorrow, beginning at 10:00 AM ET.