The tax bill that passed the Senate Thursday includes a new $2.3 trillion corporate tax rate, but it’s unlikely to get rid of all the other tax breaks, according to a new analysis.
The House passed its version of the tax bill on Tuesday, and the Senate passed its on Thursday.
The Senate’s bill would cut taxes on the wealthiest Americans, and it includes $2,000 per child for every dollar of income above $150,000.
That would cut tax rates on the richest 0.1% of Americans, who make up about 19% of the population, to 13%.
The House’s bill, meanwhile, would lower the corporate tax rates by $1,500 per employee and $400 for every $100 of earnings above $200,000, a move that would add $200 billion to the deficit over the next decade.
It’s unclear what effect the $2 billion per child cut would have on companies’ revenue or on the deficit, because it’s not clear whether it’s even a significant tax cut, as some analysts had hoped.
The nonpartisan Tax Policy Center, which is also analyzing the bill, said that if the corporate rate is cut, it would increase the deficit by about $1 trillion over 10 years.
The nonpartisan Tax Foundation said that the tax cuts in the House’s tax bill would cost $1.3 to $2 for every year the bill would have increased the deficit.
The tax cuts would have cost $3 to the economy in 2026, the Tax Foundation’s analysis said.
Trump has repeatedly criticized the tax legislation, calling it “a giveaway to the rich.”
The tax cut proposal comes as Republicans are looking for votes to repeal and replace Obamacare.