GOP Tax Plan in a Need to know format

GOP Tax Plan just passed the Senate floor. Various publications are providing in-depth coverage of the Tax Plan. Well, we decided to simplify it:

• Corporate Tax Rate

• – Analyst’s state that companies like Facebook, Google and Amazon will save $4-5 Billion in 2018 estimated.
• – JPMorgan estimated that the tax bill would help boost the earnings per share of S&P 500 companies by $10 per share in 2018

Based on various surveys done by Bank of America & Merrill Lynch , 65% of large corporations polled said they would use the new gains to pay down debt, 46% would buy back stock, and just 35% would spend on capital expenditures.

Estimated Taxes for the American Household (Per Tax Policy Center Report)

– Middle Quintile would get an average $930 in 2018 & $910 by 2020. The Tax Policy Center estimates that 80% will see a tax cut.

Flip Side

– 4.8% of tax filers would see a tax increase

– 8.9% of people would see a tax increase by 2025

“What would these average tax cuts mean for American households? For middle-income people, an extra $900 would pay for about seven months of gas,” said Howard Gleckman, a senior fellow at the TPC. “By contrast, those in the top 1% could pick up a nice Mercedes C Class Coupe with their $50,000+ average tax cut.”

The federal deficit

The G.O.P Tax plan will reduce the budget but instead add an additional $1.3 Trillion over 10 years based on the report published by the Tax Center.  Whereas conservative numbers float around the $448 billion over 10 years.