25 percent would see higher tax rates in 2027 under GOP plan: analysis

An updated report from the Tax Policy Center finds that at least a quarter of taxpayers would see their taxes go up within a decade under the Republican plan to overhaul the tax code.

The analysis also finds that at least 7 percent would see increases in the very first year.

On average, though, the report said, there would be a reduction in taxes overall throughout the decade.

{mosads}The Tax Policy Center released its original report on Monday, but was forced to retract it after finding an error. The earlier report claimed 30 percent, not 25 percent, would face higher taxes after a decade.

One reason taxes rise over the course of the decade is that the plan includes several tax credits with expiration dates.

Allowing the credits to expire reduces the estimated deficits for the bill, but Republicans also say they are confident the tax credits will be renewed after five years. If so, fewer people would see a tax increase, but the government would take in less revenue as well.

The report also found that the wealthy would disproportionately benefit from the plan.

“Taxpayers in the top 1 percent (those with income more than $730,000) would receive nearly 21 percent of the total tax cut, an average cut of about $37,000 or 2.5 percent of after-tax income,” the report found.

Those in the middle would get about $800 on average, or 1.5 percent of their after-tax income.

The Tax Policy Center is a nonpartisan group but has received criticism from Republicans, who say it is biased.