Analysis of the Protecting Family and Small Business Tax Cuts Act of 2018

The Protecting Family and Small Business Tax Cuts Act of 2018 extends major individual income and estate tax provisions from 2017’s Tax Cuts and Jobs Act that are currently scheduled to expire at the end of 2025. The bill would reduce federal revenues by $631 billion within the budget window (fiscal years 2019–28) and by almost $3.2 trillion over the subsequent decade (fiscal years 2029–38). In 2026, taxes would decline on average across all income groups, but higher income households would generally receive larger average tax cuts as a percentage of after-tax income. About two-thirds of taxpayers would receive a tax cut and about 9 percent would face a tax increase.