Congress is still debating what set of federal spending reductions could be used to offset the costs of extending expiring provisions of the 2017 Tax Cuts and Jobs Act (TCJA)—which would reduce tax revenues by $4.6 trillion over the next 10 years.
The latest Urban analysis estimates the combined impact on taxpayers’ incomes of a scenario that would extend the TCJA and cut Medicaid and Supplemental Nutrition Assistance Program (SNAP) by $880 billion and $230 billion, respectively.
They find that, on average, families with lower incomes would be worse off under this scenario—those making less than $10,000 would see a 15 percent cut in income after taxes and benefits. Meanwhile, families with higher incomes stand to benefit—those making above $200,000 would see a 4.1 percent increase in income.
