Last weekend the Joint Committee on Taxation released its updated score of the House tax bill as reported out of the Ways and Means Committee. The updated estimate predicts a loss of $1.436 trillion in revenue over the 10-year budget window, within the guidelines established under the Joint Budget Resolution that controls whether the legislation will be eligible for the filibuster-proof reconciliation procedures in the Senate. Almost $600 billion of the loss in revenue results from the House bill’s preferable treatment of pass-through business income, and another approximately $475 billion in net revenue loss results from the House bill’s corporate and international tax reforms.
The JCT also published its estimates of the distributional effects of the Senate’s Mark, which generally show across-the-board tax cuts for all income levels during the ten-year budget window. JCT’s analysis of prior versions of the House bill predicted tax increases for certain income levels in certain years.