A new analysis of Donald Trump's tax proposal finds that it will raise taxes on nearly 69 million Americans, while cutting taxes for the ultra-rich and giving away billions to wealthy families like the Trumps.
A new analysis of the tax proposal offered by Donald Trump shows that the taxes of nearly 69 million Americans will be increased if it becomes the law. At the same time, the legislation would cut taxes for the wealthiest Americans (like Trump) and give away billions to the families of the ultra-wealthy — like Donald Trump.
The non-partisan Tax Policy Center crunched the numbers in the “Unified Framework for Fixing Our Broken Tax Code” that was put together by Trump’s Treasury Department and congressional Republicans.
What they uncovered is that by 2027, “taxes would rise for roughly one-quarter of taxpayers” under the Trump plan. Based on a tax base of 176 million households within the United States, that translates into 68.8 million Americans who will have to pay more thanks to Republicans.
These new taxes would start to be felt by next year if Republicans pass the bill in 2017.
At the same time, the plan would see the top 0.1 percent of earners get an average tax cut of $700,000. The assortment of millionaires and billionaires in Trump’s cabinet, including Treasury Secretary Steven Mnuchin, who helped to create the plan, would make out like bandits.
The majority of working families in America would have to pay more in taxes, even as the plan calls for a repeal of the estate tax. For families like the Trumps, this would mean his children – Donald Jr., Eric, Ivanka, Barron, and Tiffany – would get a massive giveaway, possibly as much as $4 billion.
The toxicity of the Trump tax hike was on full display when the White House’s top salesman for the scheme, Gary Cohn, demanded that reporters ignore how skewed the plan is in favor of families like the Trumps.
House Speaker Paul Ryan, who helped to create the plan, said he was “really excited” about its contents — raising taxes for ordinary Americans, cutting taxes for corporations and the super wealthy.
The Trump administration is under fire for wealthy cabinet members traveling in luxury accommodations on the taxpayer’s dime, but the money in that corruption scandal pales in comparison to the billions the tax plan would give away – incurring over $2 trillion in deficits. As they have in the past, Republicans would likely call for cuts to Social Security and Medicare, even as the Trump family would receive more funds to spend on ostentatious gold-accented furniture.
Republicans have traditionally been associated with (disastrous) tax cuts, of the sort passed by former President George W. Bush in 2002 that helped to create the Great Recession. But tax increases are an unusual tactic.
With the Trump plan, all the downsides of tax cutting are accelerated with the extra burden of taxes being thrown on top of working families. It is a lose-lose.