The Senate Republican tax proposal unveiled Thursday would cost $516 billion over a decade after assuming macroeconomic benefits as a result of the tax cuts, according to a new analysis Friday by the Tax Foundation, a right-of-center Washington think tank.

The group found that the bill would cost $1.78 trillion in revenue over a decade. That figure would be mitigated by $1.26 trillion in new revenue generated through economic growth. The Tax Foundation found that the plan would boost gross domestic product to 3.7 percent in the long term, raise wages by 2.9 percent and create about 925,000 full-time equivalent jobs.

It also found that the highest earners would benefit the most on a "static" basis—by 2027, after-tax incomes would rise by 1.2 percent for all taxpayers, while the top 1 percent of earners would see a 4.5 percent gain. When including growth assumptions, the analysis found that after-tax income would rise by 4.4 percent for all taxpayers.

Senate Majority Leader Mitch McConnell, R-Ken., Senate Finance Committee chairman Orrin Hatch, R-Utah, Treasury Secretary Steven Mnuchin, and U.S. National Economic  Council director Gary Cohn
Senate Majority Leader Mitch McConnell, R-Ken., Senate Finance Committee chairman Orrin Hatch, R-Utah, Treasury Secretary Steven Mnuchin, and U.S. National Economic Council director Gary Cohn Andrew Harrer/Bloomberg

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