Another analysis finds GOP tax plan would explode deficits

The study by the University of Pennsylvania’s Wharton School, using the Penn Wharton Budget Model (PWBM), found that three modeled versions of the plan would raise deficits by up to $3.5 trillion over 10 years and as much as $12.2 trillion by 2040. The lowest-cost plan modeled in the study — a version that would tax corporate income at 25 percent instead of the GOP’s proposed 20 percent and pass-through income at 28 percent instead of 25 percent, among a host of other assumptions and tweaks — would lose $1.5 trillion over 10 years, or $1 trillion after accounting for economic feedback effects. The budget adopted by Republicans last week allows for up to $1.5 trillion to the added to the deficit.

The study also found that workers’ wages would increase by about 1.4 percent over a decade, far shy of the estimated benefits being claimed by the White House.

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