Ryan budget’s tax cuts would benefit the very wealthy, nonpartisan group says

By Lori Montgomery, WashPost, Updated: Friday, March 15, 11:22 AM

The tax plan embedded in the House Republican budget would cut taxes by $5.7 trillion over the next decade, with the benefits flowing disproportionately to very wealthy households, according to a new analysis by the nonpartisan Tax Policy Center.

Taxpayers earning more than $1 million a year would benefit the most from the GOP tax plan, the analysis shows, reaping an average $400,000 tax break that would send their after-tax income soaring by nearly 20 percent.

Meanwhile, taxpayers earning between $40,000 and $50,000 a year — closer to the national average — would see their taxes cut by about $666 on average, increasing their after-tax income by less than 2 percent.

The analysis by the Tax Policy Center, a project of the Brookings Institution and the Urban Institute, focuses solely on one part of the tax plan spelled out in the GOP budget: a proposal to collapse the rate structure, which tops out at 39.6 percent, into two brackets, 25 percent and 10 percent.

(More here.)