The $1,200 payment, or $2,400 for couples filing joint returns, would cost $301 billion over a decade and would increase after-tax income by about 2.59%, the right-leaning think tank said in the report. While the group estimates that nearly all tax filers in the bottom 80% of the income ladder would receive the rebates, only about 0.1% of filers in the top 1% would receive a payment, based on proposed phase-outs for wealthier households, according to the report.
People in the bottom 20% of earners would see a 16.33% increase in after-tax income under the bill, which would also provide people with children a $500 payment per child, according to the report. The think tank said the Internal Revenue Service, which would distribute the payments, could use 2020 tax return information in 2021 to implement the phase-out for wealthier individuals and families.
The bill's proposal to waive aviation excise taxes on kerosene until 2021 would reduce revenues by around $8 billion in 2020, the Tax Foundation said.
The report was based on the latest version of the bill, which stalled in the Senate over the weekend as talks between Republicans and Democrats deteriorated.
--Additional reporting by Stephen Cooper. Editing by Robert Rudinger.
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