Households can expect to save an average of $1,200 in 2019 thanks to the Senate's proposed overhaul, but the largest tax cuts will go to the highest income earners.
Those are the findings of the Tax Policy Center's new analysis of the "Tax Cuts and Jobs Act."
In 2019, households across the board will save on taxes under the Senate's version of the bill. Those in the lowest quintile, with incomes below $25,000, would get an average tax cut of $40, while middle-income households earning between $50,000 and $87,000 would get an average tax cut of about $800, according to the Tax Policy Center.
For the top 1 percent of households — those whose income exceeds $750,000 — taxes would fall by an average of $28,000, the Tax Policy Center found.
"On average, there's a slight tax cut in the early years because of the doubling of the child tax credit and other provisions to offset the things that are being repealed," said Mark Mazur, director of the Tax Policy Center.
(Click here for an interactive chart on how the GOP tax plan could affect your wallet.)
But consumers may not benefit in the long haul. The Senate's tax cuts become less generous by 2027, averaging out to about $300, according to the Tax Policy Center. This is because nearly all of the individual income tax provisions expire after 2025.
"In later years, the Senate turns off almost all individual income tax provisions," Mazur said. "The higher child tax credit goes away after 2025."