New GOP Bill Seeks to Make 2017 Tax Cuts Permanent

Rep. Kevin Brady, R-Texas, ranking minority member on the House Ways and Means Committee who’s a co-sponsor of Buchanan’s bill, said in a statement that “making the historic Tax Cuts and Jobs Act permanent will lock in low taxes for families and small businesses struggling with record inflation.”

Garrett Watson, senior policy analyst at the Tax Foundation, told ThinkAdvisor Thursday in an email that the foundation has estimated “the impact of the major provisions in Buchanan bill for making permanent the TCJA individual provisions (outside of some minor items).”

Making the TCJA individual tax provisions permanent “would increase the size of the economy in the long-run by about 2.2%, raise wages by 0.9% and create 1.5 million full-time equivalent jobs, but it would also come at the tradeoff of about $638 billion in federal government revenue loss from 2019 to 2028,” Watson said.

From 2023 to 2032, Watson said, “it would cost closer to about $1.9 trillion over ten years. We also found that distributionally, it would increase after-tax incomes for households across all income groups, ranging from a 1.2% increase in after-tax incomes for the bottom 20% of taxpayers and a 1.5% increase in after-tax income for the top 20%.”