Public opinion on the GOP tax bill varies widely.
Different business, advocacy, and trade groups hold significant concerns regarding the plan, while others argue it could stimulate the economy.
The legislation is not yet enacted, with another round of votes expected soon. Republican leaders aim to present it to President Trump for final approval by Christmas.
Below is a summary of various reactions, both supportive and critical. Some statements have been edited for clarity.
Millions may lose their health insurance
The proposal would repeal a critical component of Obamacare, known as the individual mandate. The nonpartisan Congressional Budget Office predicts that by 2027, 13 million people may lose health insurance, with premiums increasing by around 10% in most years.
Families USA: “The House and Senate Republican leadership’s plan will raise health insurance premiums, forcing millions—including those with pre-existing conditions like cancer and diabetes—to pay more for coverage, while many others will lose their insurance altogether, all to fund permanent tax cuts for wealthy donors and corporations.” — Families USA Executive Director Frederick Isasi
Families USA advocates for healthcare consumers and promotes their interests.
Lower corporate tax rates will benefit the economy
The bill reduces the corporate tax rate from 35% to 21% and lowers tax obligations for pass-through businesses like LLCs and partnerships.
Business Roundtable: “Business leaders commend the conference committee for reaching a consensus that will enhance U.S. competitiveness and drive economic growth.” — Business Roundtable statement
Business Roundtable comprises CEOs from major U.S. corporations.
American Bankers Association: “The ABA believes that the significant reforms in this legislation will foster economic growth and job creation, particularly praising provisions that reduce tax rates for all business types starting in 2018. Currently, banks face one of the highest effective tax rates in any industry, and these crucial changes will enable our members to better serve their clients and the broader economy.” — ABA President and CEO Rob Nichols
The ABA represents banks of all sizes, from small to large institutions.
Americans for Prosperity: “This tax reform plan ultimately provides relief for the working class while opening opportunities for small business owners and job creators. Though it’s not flawless, the success of the House and Senate in improving a flawed system must be acknowledged, as must the Trump administration’s commitment to achieving tax reform this year.” — AFP President Tim Phillips.
AFP is a conservative advocacy organization.
Financial Services Roundtable: “Tax reform will create expanded opportunities for individuals and American businesses of all sizes. Congress needs to quickly finalize tax reform and empower America to engage in economic initiatives.” — Financial Services Roundtable CEO Tim Pawlenty
The Financial Services Roundtable advocates for the interests of banks and credit card companies.
Impacts on homeowners
The bill lowers the mortgage interest deduction cap from $1 million to $750,000 and eliminates the deduction for home equity loan interest. Homeowners with existing mortgages would not be impacted by these changes.
California Association of Realtors: “The final tax reform bill unfairly penalizes homeowners and undermines homeownership. Congress is claiming this is a tax cut for middle-class families, but in reality, thousands of middle-class homeowners in California will face the first tax increases.” — CAR President Steve White
The California Association of Realtors represents 190,000 real estate professionals throughout the state.
Negative effects on cities and states
The proposed legislation will maintain the state and local tax deductions for itemizers, but it caps them at $10,000.
National League of Cities: “Congress cannot finance tax reform by stripping away the resources necessary to build healthier, stronger, and more vibrant communities. While the bill preserves important credits and partially safeguards the state and local tax (SALT) deduction, it ultimately falls short of protecting American families and their communities.” — NLC President Mark Stodola, mayor of Little Rock, Arkansas
The NLC represents the interests of 19,000 cities and towns across the United States.
Charitable contributions may decline
The tax legislation roughly doubles the standard deduction, causing taxpayers to only be able to deduct charitable contributions if they itemize their tax returns. Nonprofit organizations warn that this increase in the standard deduction could eliminate a critical incentive for charitable giving.
National Council of Nonprofits: “The current deal will have devastating consequences for charitable nonprofits throughout the country. If this bill becomes law, it could lead to a reduction in charitable giving by $13 billion or more each year, resulting in over 220,000 job losses in nonprofits and impairing the ability of these organizations to meet community needs. Although simplifying tax legislation is commendable, this bill poses far more harm than good.” — National Council of Nonprofits President and CEO Tim Delaney
The National Council of Nonprofits advocates for charitable organizations in the U.S.
Small businesses may face challenges
The bill introduces new regulations for businesses that file individual tax returns, referred to as pass-throughs.
Businesses for Responsible Tax Reform: “The proposals do little to simplify the tax code and instead complicate matters further for the over 90% of small businesses organized as pass-through entities. This forces small business owners to invest considerable time and resources in navigating a convoluted tax structure, which continues to favor large corporations that can hire extensive accounting teams to exploit every loophole. Additionally, a growing deficit negatively impacts business operations as it leads to increased interest rates.” — Letter to Congress from Businesses for Responsible Tax Reform, signed by nearly 2,000 entrepreneurs
Businesses for Responsible Tax Reform is a coalition supporting small business interests.
Economic growth may come with increased federal debt
While the bill lowers corporate taxes, it is projected to increase deficits by approximately $1.46 trillion over the next decade, according to the nonpartisan Joint Committee on Taxation.
American Enterprise Institute: “This legislation features a long-awaited reduction in the corporate tax rate that could attract investment to the U.S., enhancing worker productivity and wages. However, it is also expected to escalate government debt, raising the risk of higher interest rates and potentially negating the benefits of increased investment. There is a pressing need for a strategy to address long-term fiscal imbalances.” — AEI Resident Scholar Alan D. Viard
The American Enterprise Institute is a think tank based in Washington, D.C. that advocates for free enterprise and libertarian principles.
