“I don’t think tax reform, per se, is a bad thing,” says Schneider, a retired economics professor in Newton, Mass. “Whenever there’s tax reform, there are winners and losers. But what I find beyond annoying is the blatant disregard for who the losers are.”
President Donald Trump promised major tax cuts as a candidate last year, and the Republican-controlled Congress is now poised to deliver. The House has already passed a large tax-cut bill, and Senate leaders say they hope to pass their own bill soon. The two chambers may speed up the usual negotiating process for melding House and Senate bills into a single piece of legislation, so Congress could end up passing sweeping tax cuts by late 2017 or early 2018.
It’s fairly clear what the final bill is likely to look like. Tax cuts would total roughly $1.5 trillion over 10 years, or $150 billion per year, on average. About 75% of the savings would go to businesses, thanks to a reduction of the corporate rate to 20% from 35%, and other changes. Individuals would enjoy the other 25%, with large tax cuts for the wealthy and less accruing to the middle class.