Tony Romm , The New York Times; Poorest Americans Dealt Biggest Blow Under Senate Republican Tax Package
"Millions of low-income Americans could experience staggering financial losses under the domestic policy package that Republicans advanced through the Senate on Tuesday, which reserves its greatest benefits for the rich while threatening to strip health insurance, food stamps and other aid from the poor.
For many of these families, the loss of critical federal support is likely to negate any improvements they might have seen as a result of slightly lower taxes, experts said. That reality could undercut Republican lawmakers and President Trump, who insisted anew this week that their legislative vision would benefit the entire economy.
The latest evidence arrived in the hours before lawmakers finalized their signature legislation. Studying a since-amended version of the Senate bill, experts at the Budget Lab at Yale, a research center, concluded Monday that it would parcel out its benefits disproportionately.
Americans who comprise the bottom fifth of all earners would see their annual after-tax incomes fall on average by 2.3 percent within the next decade, while those at the top would see about a 2.3 percent boost, according to the analysis, which factors in wages earned and government benefits received.
On average, that translates to about $560 in losses for someone who reports little to no income by 2034, and more than $118,000 in gains for someone making over $3 million, the report found. Martha Gimbel, the co-founder of the budget lab, described the Senate measure as “highly regressive.”
The disparity owes largely to the fact that Republicans aim to pay for their tax cuts by slashing programs for the poor, including Medicaid and food stamps. The cuts amount to one of the largest retrenchments in the federal safety net in a generation. But the savings they generate only offset a fraction of the total cost of the bill, which is expected to add more than $3 trillion to the federal debt by 2034."
