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Friday, November 24, 2017

Today's Tax Reform Cost - How Much is $1.5 Trillion?

A budget agreement that preceded current tax reform efforts included that tax reform can "cost" up to $1.5 trillion over ten years (H.Con. Res. 71).

Key actions and votes on this resolution:
  • 10/5/17 – passed in House by 219-206 
  • 10/19/17 – passed in Senate by 51-49
  • 10/26/17 – Senate amendment passed in House by 216-212
Also see:
·       House Budget Committee summary and explanation of 11/7/17
·       House Budget Committee news on Senate-Passed Budget Resolution (10/24/17)
  • The passage of the budget with the $1.5 trillion for tax reform was slim in both House and Senate. What does this mean for tax reform? H.R. 1, Tax Cuts and Jobs Act passed on 11/16/17 in the House by 227-205 (13 Republicans voted against it). What might happen in the Senate?
  • A $1.5 trillion deficit over ten years divided among the 325,365,000 people in the U.S. comes out to $4,610 per person or $461 per year per person.  I'm reminded of an article in The Atlantic in May 2016, "The Secret Shame of Middle-Class Americans," that almost half of Americans could not put their hands on $400 for an emergency. So, seems that not only does this sound like a lot of money, it is even when it comes down to every person (of all ages) in the U.S. 
  • What about $1.5 trillion spread out over the 148,840,642 individual income tax filers we have (for 2015)? That comes out to $10,078 per individual filer over 10 years or $1,008 per year per individual filer.
What do you think?

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