The US GOP has put forth a tax plan that would lower the corporate tax rate by 15 points to 20 percent, according to a summary document from the House Ways and Means Committee.
The Tax Foundation has released a report on Friday that said that plan would “reduce federal revenues by $1.98 trillion” in a decade, adding that on a “dynamic basis” the reduction will amount to $989 billion in the same period.
Moreover, the Republican plan would result in 0.9 percent higher after-tax income for all Americans and 3.3 percent higher after-tax income for the 1 percent of the wealthy in 2027, the report revealed.
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When it comes to unemployment, the report also suggests that the tax reform would increase the size of the US economy by 3.9 percent in the long run as well as add 975,000 more full-time equivalent jobs.
On Thursday, Republican members of the House of Representatives unveiled their tax reform proposal.
President Donald Trump expressed confidence that the tax proposal will be on his table for a final signature by the end of 2017. The US president said the new plan would contribute to job growth in the United States and give a well-needed tax relief to working Americans. Trump has repeatedly advocated for significant tax cuts for the middle class and reduced taxation on businesses.