September 26, 2016 01:50 PM | Permalink |
For Immediate Release: Monday, September 26, 2016
Plan cuts taxes for every income group on average, but some low-income families would see tax increases
A new distributional analysis of Donald Trump’s tax plan reveals that 44 percent of the candidate’s proposed tax cuts would go to the top 1 percent of taxpayers, and the plan would increase the nation’s debt by $4.8 trillion over 10 years, Citizens for Tax Justice said today.
“To be sure, Trump’s latest tax plan costs less than the initial deficit-inflating tax proposal that he laid out earlier this year,” said CTJ director Bob McIntyre. “But this new tax plan is in the same spirit as Trump’s initial proposal. He would cut taxes for the rich, cut taxes for businesses, provide miniscule tax cuts for lower-income groups, and then claim it’s a populist plan that helps working families.”
While the analysis found that every group would receive a tax cut overall (the lowest-income 20 percent, for example, would receive an average annual tax cut of about $200), the wealthiest Americans, with average annual incomes of $1.7 million, would be the biggest beneficiaries, with an average annual tax cut of $88,410.
The analysis also found that some lower-income families would experience tax increases under Trump’s plan, including married couples who itemize, childless couples, families with children over 13, and single parents. These groups could be subject to a tax increase because the lowest tax rate would go up under Trump’s tax plan, and the plan as it is currently written does not include any mechanism to prevent these tax increases.
“In addition,” McIntyre noted, “the severe cuts in federal programs that would be the inevitable result of Trump’s tax plan would likely leave all but the highest-income families much worse off than they are now.”