The House Ways and Means Committee is expected to vote Wednesday on a tax reform bill that would cut taxes for corporations, the wealthiest Americans, the richest households and the wealthy, according to an analysis of the Senate bill released Tuesday.
The nonpartisan Tax Policy Center, which has been working on a bipartisan tax overhaul for months, estimated the tax cuts would generate $1.4 trillion in additional economic activity over 10 years, while reducing overall federal revenue by $1 trillion.
The Tax Policy Council, which represents big business, the Chamber of Commerce and other powerful interests, said the bill would increase the deficit by $2.3 trillion over 10 decades.
The Congressional Budget Office, a nonpartisan economic forecasting agency, said that a plan that did not include a corporate rate cut would reduce revenue by about $2 trillion over the decade.
But the Tax Policy Institute, a liberal think tank, said there would be far more revenue to be created by eliminating tax breaks and deductions that help the wealthy and corporations, such as the deduction for state and local taxes and the credit for college tuition.
The Senate bill would provide a deduction for college expenses for families with incomes of $250,000 or more, the Tax Center estimated.
But the House bill would eliminate the deduction.
The nonpartisan Tax Foundation estimated the House plan would boost revenue by more than $1,000 per person for each year that the deduction is allowed, but would cost $3,000 to $5,000 in higher taxes for the average taxpayer.
The Tax Policy Committee, a conservative think tank focused on tax policy, estimated that the House tax plan would cut revenue by an additional $1.,000 for each individual taxpayer.
The group, which is chaired by former House Speaker Newt Gingrich, also predicted that the bill will increase the deficits for both parties by $4.3 billion over the 10-year period.
In the House, the committee is expected have enough votes to pass the bill on a party-line vote, while the Senate will need 60 votes to overcome a filibuster.