Republicans are preparing a budget that would reduce the federal budget deficit by $1.9 trillion over the next decade, but only for the wealthy and corporations, according to a new report from the House Ways and Means Committee.
But the proposal would also cut $1,700 for every household earning more than $125,000, and $900 for every person earning less than $30,000.
That would leave an average of $4,000 per household under the plan.
Republicans plan to use the $1 trillion in cuts to help cover the cost of a massive tax cut for the wealthiest Americans, the report found.
It would also boost defense spending, which the party wants to offset by lowering taxes on corporations and wealthy individuals.
It’s a little-noticed move in the GOP’s fiscal plan, which is expected to be introduced in the House this week.
The plan is aimed at bolstering the economy and getting the government back on track, rather than adding to it, the Ways and Mean panel said.
While it is important for Republicans to address the budget deficit in order to avert a government shutdown, the GOP has been less than optimistic about what it will accomplish in the short term, said Rep. Dave Camp, R-Mich., a member of the Ways & Means panel.
It’s also unclear whether the $600-per-household cut would help offset any of the tax cuts, Camp said.
The GOP plan is a departure from what the party has been trying to do in recent years, Camp told The Hill.
He said the House Budget Committee is currently working on a “Plan B” that would cut taxes for all Americans, and has yet to release its recommendations.
“It’s really important to get these plans on the table,” Camp said, “because they have so much potential to add billions of dollars to the deficit.”
The House Budget and Policy Committee released a report earlier this month that outlined what the GOP would do to combat the looming deficit, with the biggest cuts going to the military and the Department of Education.
Republicans are now working on that plan, and the budget plan is expected in the coming days, said Sen. Lamar Alexander, R, Tenn., chairman of the panel.
The House Ways & Mean Committee also released a budget blueprint earlier this year that laid out what the budget would look like in 2025.
The budget would eliminate the budget gap by $2.3 trillion over 10 years, and increase the federal debt by $19 trillion, according the report.
On Monday, the House of Representatives voted to approve a budget resolution that would eliminate some of the sequester cuts to Medicare, Medicaid and food stamps, and would raise taxes on high-income households by $5,000 for every $100 earned above $250,000 and $2,500 for every dollar earned above about $50,000 a year.
The resolution would also repeal the estate tax and other tax breaks for the middle class.
In the Senate, Democrats were hoping to push a plan that would raise more than the $3 trillion in revenue that would be cut under the Republican budget plan.
That plan, introduced by Sens.
Elizabeth Warren, D-Mass., and Kamala Harris, D, Calif., would add $2 trillion to the debt over the course of the decade.
Democrats also want to raise taxes for corporations, individuals and households making more than about $150,000 annually, the bill’s authors said.
That revenue would offset some of what is expected from a $1-trillion tax cut on the wealthy.
Democrats also want the Senate Budget Committee to produce a blueprint that would lay out a tax cut package for working families, and have the budget panel begin work on that.