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Pols debate the true savings under GOP tax plan

Posted at 7:26 PM, Nov 30, 2017
and last updated 2017-11-30 20:26:51-05

Tax cuts are on the line as the US Senate takes up the GOP tax plan.

Speaker Paul Ryan optimistic there will be a signed deal by the end of the year as he talked up tax cuts in his district.

"The average four-person household will get an average $2,000 tax cut under this tax relief bill," Ryan said.

Numbers from the official scorekeeper in Congress, the Joint Committee on Taxation, says nearly half of all taxpayers will see at least a $500 cut in 2019.

"The analysis is really clear," Ryan said, "the average taxpayer in every income group gets a tax cut but particularly middle-income taxpayers."

But the non-partisan Congressional Budget Office is predicting, under the Republican plan, middle class and poor Americans will fare worse, paying more taxes over a decade while the wealthy will pay less.

However, Ryan says cutting the corporate tax rate from 35 percent to 20 percent will increase wages and incomes for workers.

"If you lower the corporate tax rate, the bulk of the benefit will go to the workers for those corporations in the first place," Ryan said.

Democrats, like Rep. Gwen Moore are not convinced, saying Ryan is more concerned about "Wall Street politics than Main Street."

Moore writes the GOP tax bill: "...hurts middle class workers, hurts the poor, hurts working mothers, hurts students, hurts universities, hurts healthcare, hurts state and local governments...."

A new congressional analysis says the Senate tax package would add $1 trillion to the budget deficit over the next decade.