The Senate's tax reform plan is "pro-growth" and will save all Americans money in taxes, according to an analysis released Friday.
The Tax Foundation report claims the tax reform legislation will increase the nation's GDP, will cause wages to rise, and will add jobs to the economy.
"According to the Tax Foundation's Taxes and Growth Model, the plan would significantly lower marginal tax rates and the cost of capital, which would lead to a 3.7 percent increase in GDP over the long term, 2.9 percent higher wages, and an additional 925,000 full-time equivalent jobs," the report reads, adding that economic growth from the plan will lead to an additional $1.26 trillion in federal revenues.
"On a static basis, the plan would lead to 1.2 percent higher after-tax income on average for all taxpayers and 4.5 percent higher after-tax income on average for the top 1 percent in 2027. When accounting for the increased GDP, after-tax incomes of all taxpayers would increase by 4.4 percent in the long run."
The House released the original version of the tax reform plan, called the Tax Cuts and Jobs Act, on Nov. 2. On Thursday, the Senate made public its version of the legislation.
Democrats have vowed not to support the GOP tax plans, saying they will hurt the middle class.
The Tax Foundation calls itself "the nation's leading independent tax policy nonprofit."
© 2021 Newsmax. All rights reserved.