About 4.2 million additional taxpayers will escape federal income taxes in 2018, according to a new analysis by the Tax Policy Center.
Under the GOP tax plan, 45.8 percent of won’t pay income taxes or will get a net refund from the federal government, up from 43.4 percent under current law.
Bloomberg’s Sahil Kapur points out that this makes the tax bill “a base-shrinker, despite the ‘base-broadening’ rhetoric.”
Over time, though, the effect fades due to the use of chained-CPI to measure inflation, which slowly pulls more taxpayers back onto the rolls.
And with the expiration of many individual tax cuts in 2025, the bill ultimately would have 1.1 million more people paying income taxes in 2027 than would be the case under current law.
