Economy & Labor

Instead of $2 Trillion Corporate Tax Cut, GOP Could Give Average American Families $17,000 Each

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Americans expressed doubts that the GOP's tax plan would benefit them in a meaningful way — even if they're in the segment of the population that could receive $1,182 more per year in tax savings — especially compared to the huge tax cut given to corporations under the plan.Americans have expressed doubts that the GOP’s tax plan would benefit them in a meaningful way — even if they’re in the segment of the population that could receive $1,182 more per year in tax savings — especially compared to the huge tax cut given to corporations under the plan. (Photo: Pixabay)

Appearing on CNN Thursday, Sen. Elizabeth Warren (D-Mass.) argued that the $1,182 that Republicans spent the day touting as the money average American families will save under their tax plan, is far from what the government could afford to give them — if they weren’t spending that money on massive tax cuts for the rich.

As House Leader Paul Ryan (R-Wis.) and his colleagues said in a press conference unveiling some of the proposal’s details, “the typical family of four will save $1,182 a year on their taxes.”

Most American families would happily accept an extra $1200 per year to help with bills, college funds, and savings — but the estimated sum of $1,182 will only apply to families of four earning $59,000 per year, not lower income households.

Critics were also concerned about the GOP’s plans for the Child Tax Credit. As the CBPP explained in September after the Republicans unveiled the framework for their plan, the Party “proposed to make their Child Tax Credit increase non-refundable, meaning that working families with incomes too low to have federal income tax liability would not benefit.” A single parent raising two children making minimum wage would be left out of receiving the credit.

Sister Simone Campbell of NETWORK Lobby for Catholic Social Justice also noted that immigrant families would lose out under the plan. The so-called Tax Cuts & Jobs Act “rips the credits away from 5.1 million children whose parents are immigrant taxpayers with an average annual income of $21,000, which is a loss of 8.5% of their annual income. This will directly jeopardize the economic, educational, and developmental outcomes of children living in the U.S.”

On social media, Americans expressed doubts that the GOP’s tax plan would benefit them in a meaningful way — even if they’re in the segment of the population that could receive $1,182 more per year in tax savings — especially compared to the huge tax cut given to corporations under the plan.

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