We retired Tax Justice Blog in April 2017. For new content on issues related to tax justice, go to www.justtaxesblog.org
*Updated as of November 4, 2015
Donald Trump released a tax plan today that is missing some details. But a preliminary analysis of the plan by Citizens for Tax Justice finds that it would cost $12 trillion in its first decade. The plan would reduce taxes on all income groups, but by far the biggest beneficiaries would be the very wealthy.
This is yet another example of a presidential candidate making a mockery of populism by trumpeting a massive tax break for the rich as a plan that will benefit average Americans. The top 1 percent of Americans will receive an average tax break of $227,000 per year while the bottom 20 percent will receive an average tax cut of only $250.
Trump claims the plan will be revenue neutral, but he has made bombastic exaggerations before and this time is no different. In fact, there is no possibility that this plan would not be a gigantic tax cut for the rich and a gigantic revenue loser for the government.
Trump also claims he will pay for the plan by closing tax loopholes for the rich. But in truth, his plan would expand loopholes for the rich and cut their tax rate by 40 percent. His plan also would cut the corporate tax from 35 to 15 percent, which also would mainly benefit the rich. And his plan repeals the estate tax, a tax that only the very richest of the rich pay.
Click here to read CTJ’s full analysis of Trump’s proposal.