The Tax Policy Centre, made up of independent experts, has produced a distributional analysis of the impact of the Senate’s tax bill. This shows that the bill would reduce taxes on average for most Americans between 2019 and 2025.
But by far the biggest beneficiaries of the tax cuts by over the next decade would be the top 1 per cent and the top 0.1 per cent of American households. And by 2027 taxes would rise for the lowest income groups.
The bill also repeals the Obama administration requirement that all Americans obtain health insurance, which is likely to mean that around 13 million fewer Americans, most of them less well-off, have health coverage by 2027, according to the non-partisan Congressional Budget Office.
The tax cut for “pass through” companies is also likely to benefit wealthy individuals most of all. One major user of these structures is Donald Trump himself.
