Search This Blog

Defying the Odds

Defying the Odds
New book about the 2016 election.

Monday, October 2, 2017

Tax Plan Benefits the Wealthy

In Defying the Odds, we discuss the tax issue in the 2016 campaign. Trump railed against special interests and claimed to be the champion of ordinary Americans.

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.