Republicans are hoping to avoid a major tax overhaul that will hurt the wealthy by lowering rates and cutting the number of deductions and credits.
But that plan would also leave many taxpayers worse off, analysts say.
The Tax Policy Center said Thursday that the plan would leave more than $1.3 trillion in revenue short of the Trump administration’s $1 trillion tax cut target.
The savings would be small relative to the $1,500 a year that middle-class households would receive under the plan.
The Trump administration is looking to raise more than two-thirds of the $4 trillion it needs to avoid the fiscal cliff, which would be a major challenge for Congress to overcome.
The Congressional Budget Office said Thursday the GOP tax plan would increase the debt by $1 to $3.2 trillion over a decade.
That’s far higher than the $800 billion the CBO expects to raise under the Trump plan.
“The tax cuts will disproportionately benefit the wealthy and corporations, who will spend more on their businesses and their pensions, while reducing revenues for many families,” said Peter Diamond, a senior fellow at the Tax Policy Centre.
“It is not clear how the bill will raise the revenues needed to balance the budget.”
House Ways and Means Chairman Kevin Brady, R-Texas, said Thursday in a statement that “we will work to improve the plan to protect middle-income families and businesses while protecting our nation’s long-term economic health.”
Republicans also are working on a package that would repeal the Obamacare taxes and impose a tax on health care.
They have not yet finalized their tax plan, which is expected to include $2.5 trillion in tax breaks, but have said they are looking at changes that could help offset some of the tax cuts.
Trump said Friday that the Senate would not vote on a tax overhaul until 2018.
The Senate passed a $1 Trillion infrastructure plan in May.
The House passed its $1trillion infrastructure bill in October.