Howard Gleckman at the Tax Policy Center:
The tax outline unveiled this week by President Trump and the congressional Republican leadership would reduce federal revenue by $2.4 trillion over the next decade, according to a new analysis by the Tax Policy Center. The plan would cut taxes for low- and middle-income households modestly, while focusing most of its benefits on the highest-income 1 percent.
President Trump has promoted the tax package, called the “Unified Framework for Fixing our Broken Tax Code,” as an historically large tax cut for the middle-class and a tax increase for the highest-income households. The reality, however, is quite the opposite.
In 2018, the framework would cut taxes for moderate-income households by an average of $660, or 1.2 percent of their after-tax income. By contrast, it would boost the after-tax incomes of the highest-income 1 percent by an average of $130,000, or more than 8 percent. The top 0.1 percent would get an average boost in after-tax income of $720,000 or 10.2 percent of their after-tax income.
The top 1 percent (those making $730,000 or more) would receive half of all the plan’s tax cuts while middle-income households (those making between about $50,000 and $90,000) would get only about 8 percent of the total benefit.