Heritage: Average household in every district will benefit from Trump tax law

The Heritage Foundation on Monday released research finding that the average household in each congressional district and state will receive a tax cut in 2018 from President Trump’s tax law.

The right-leaning think tank is presenting its findings in a paper, as well as an interactive map on its website.

“These benefits could be even greater if the tax law is made permanent and could disappear if the tax cuts are repealed,” the Heritage researchers wrote in their paper.

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The release of the paper and map comes as Trump and House Republicans are pushing to take action on a second round of tax cuts this year. The release of the materials also comes on the last week before the House begins its August recess, when many GOP lawmakers may be planning to discuss the new tax law with their constituents.

Republicans and Democrats have been debating the tax law, known as the Tax Cuts and Jobs Act (TCJA), ahead of November’s midterm elections. While Republicans have been arguing that the measure is a boon to middle-class households and the economy, Democrats have been arguing that the law mostly benefits wealthy individuals and corporations. Democrats have expressed interest in rolling back parts of the tax law if they win control of Congress in the midterms.

Heritage in its paper found that, nationally, households will on average receive a tax cut of $1,400 in 2018 and that married couples with two kids on average will get a tax cut of about $2,900. 

Heritage also estimated the increase in take-home pay that taxpayers will see over 10 years, due to tax changes in the new law and the economic growth produced by it. The group’s researchers estimated that the average household will see an increase in take home pay of more than $26,000 and the average family of four will see an increase in take-home pay of more than $44,000.

Heritage found that the size of taxpayers’ tax cuts varies considerably across congressional districts. Households in higher-income areas often will see the largest dollar-amount reduction in their taxes. However, some lower-income districts are estimated to receive the largest percentage decrease in income taxes.

“Lower-income communities benefit from the TCJA due to the increased standard deduction, the reductions in marginal rates, and the expanded child tax credit,” Heritage researchers wrote. “Repealing the TCJA, a goal that some advocacy organizations and congressional candidates have proposed, will eliminate these benefits for residents of lower-income congressional districts.”