The Washington Free Beacon – Incomes would rise on average by 8.7 percent or by $4,917 for median households. The House Republican tax reform plan introduced by Speaker Paul Ryan (R., Wis.) would create 1.7 million jobs and increase after-tax incomes on average by 8.7 percent, according to a report from the Tax Foundation.
The plan lowers marginal tax rates on wage, investment, and business income as well as simplifying the tax code so that it could fit on a postcard. The reform package would also lower the corporate tax rate to 20 percent, broaden the tax base, and eliminate federal estate and gift taxes.
The group analyzed the GOP blueprint, also known as “A Better Way,” to evaluate the state-by-state impact on jobs and income.
On a national level, the analysis found that the plan would create 1,687,000 new full-time jobs and increase the after-tax incomes of median households by $4,917. The increase in jobs and income growth are due to the plan’s ability to increase productivity and economic growth as well as income tax cuts.