Senate Tax Cuts and Jobs Act as Passed by the Committee on Finance (Nov 2017)

Tables show the distributional results of the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Level in 2025.

Tables show the distributional results of the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Level in 2027.

Table shows tax units with a tax increase or tax cut under the major provision in the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Level in 2019. Excludes reduction in ACA Individual Shared Responsibility Payment amount to zero. Due to data limitations, also excludes the following provisions: repeal of exclusion for employer-provided qualified moving expense reimbursements; repeal of deduction for moving expenses (other than members of the Armed Forces); simplified accounting for small business; limitation on deduction by employers of expenses on qualified transportation fringes; modification of limitation on excessive employee remuneration; 20 percent excise tax on excess tax-exempt organization executive compensation; tax gain on the sale of a partnership interest on look-thru basis; repeal of advanced refunding bonds (portion attributable to individuals); and Craft Beverage Modernization and Tax Reform. 

Table shows tax units with a tax increase or tax cut under the major provision in the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Level in 2025. Excludes reduction in ACA Individual Shared Responsibility Payment amount to zero. Due to data limitations, also excludes the following provisions: repeal of exclusion for employer-provided qualified moving expense reimbursements; repeal of deduction for moving expenses (other than members of the Armed Forces); simplified accounting for small business; limitation on deduction by employers of expenses on qualified transportation fringes; modification of limitation on excessive employee remuneration; 20 percent excise tax on excess tax-exempt organization executive compensation; tax gain on the sale of a partnership interest on look-thru basis; repeal of advanced refunding bonds (portion attributable to individuals); and Craft Beverage Modernization and Tax Reform. 

Table shows tax units with a tax increase or tax cut under the major provision in the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Level in 2027. Excludes reduction in ACA Individual Shared Responsibility Payment amount to zero. Due to data limitations, also excludes the following provisions: repeal of exclusion for employer-provided qualified moving expense reimbursements; repeal of deduction for moving expenses (other than members of the Armed Forces); simplified accounting for small business; limitation on deduction by employers of expenses on qualified transportation fringes; modification of limitation on excessive employee remuneration; 20 percent excise tax on excess tax-exempt organization executive compensation; tax gain on the sale of a partnership interest on look-thru basis; repeal of advanced refunding bonds (portion attributable to individuals); and Craft Beverage Modernization and Tax Reform. 

Table shows the effect marginal tax rates on wages and salaries under current law and the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Level in 2019. We calculate effective marginal tax rates by adding $1,000 to wages and salaries and recomputing tax liability. Our computation includes the impact of the alternative minimum tax and the phase-in and phase-out of credits and other tax provisions. We assume that under the proposal, a certain fraction of individuals recharacterize their wage and salary income as business income eligible for the preferential rates. For these individuals, we also assume that the increment to wages and salary is recharacterized as business income. We assume that the increase in wages does not change the reported amount of any deductions, exclusions, or other forms of income. Effective marginal tax rates are weighted by current-law wages and salaries.

Table shows the effect marginal tax rates on capital income under current law and the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Level in 2019. We calculate effective marginal tax rates by adding $1,000 to the income source and recomputing tax liability. Our computation includes the impact of the alternative minimum tax and the phase-in and phase-out of credits and other tax provisions. We assume that the increase in income does not change the reported amount of any deductions, exclusions, or other forms of income. Effective marginal tax rates are weighted by the appropriate income source.

Table shows the effect marginal tax rates on wages and salaries under current law and the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Level in 2025. We calculate effective marginal tax rates by adding $1,000 to wages and salaries and recomputing tax liability. Our computation includes the impact of the alternative minimum tax and the phase-in and phase-out of credits and other tax provisions. We assume that under the proposal, a certain fraction of individuals recharacterize their wage and salary income as business income eligible for the preferential rates. For these individuals, we also assume that the increment to wages and salary is recharacterized as business income. We assume that the increase in wages does not change the reported amount of any deductions, exclusions, or other forms of income. Effective marginal tax rates are weighted by current-law wages and salaries.

Table shows the effect marginal tax rates on capital income under current law and the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Level in 2025. We calculate effective marginal tax rates by adding $1,000 to the income source and recomputing tax liability. Our computation includes the impact of the alternative minimum tax and the phase-in and phase-out of credits and other tax provisions. We assume that the increase in income does not change the reported amount of any deductions, exclusions, or other forms of income. Effective marginal tax rates are weighted by the appropriate income source.

Table shows the effect marginal tax rates on wages and salaries under current law and the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Level in 2027. We calculate effective marginal tax rates by adding $1,000 to wages and salaries and recomputing tax liability. Our computation includes the impact of the alternative minimum tax and the phase-in and phase-out of credits and other tax provisions. We assume that under the proposal, a certain fraction of individuals recharacterize their wage and salary income as business income eligible for the preferential rates. For these individuals, we also assume that the increment to wages and salary is recharacterized as business income. We assume that the increase in wages does not change the reported amount of any deductions, exclusions, or other forms of income. Effective marginal tax rates are weighted by current-law wages and salaries.

Table shows the effect marginal tax rates on capital income under current law and the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Level in 2027. We calculate effective marginal tax rates by adding $1,000 to the income source and recomputing tax liability. Our computation includes the impact of the alternative minimum tax and the phase-in and phase-out of credits and other tax provisions. We assume that the increase in income does not change the reported amount of any deductions, exclusions, or other forms of income. Effective marginal tax rates are weighted by the appropriate income source.