Trump's tax plans

[stpioc]

A surprise? Hardly..

President Donald Trump's new tax plan may result in the richest getting richer and the middle class eventually seeing a slight tax increase, a study released Friday found. In an initial analysis of the nine-page framework for tax reform, the Urban Institute and Brookings Institution's Tax Policy Center found that Americans among the top 1% of earners would see the bulk of the plan's benefits, while lower- and middle-class Americans — even most upper-class people — would see few benefits.

The TPC said that its analysis was preliminary and that many of the aspects of Trump's tax plan were still up in the air, since its principles haven't yet been crafted into legislation. The report also used static scoring, which does not factor in potential economic growth in the years after the plan's implementation. The White House prefers dynamic scoring, which assumes higher tax revenues from more economic growth.

"Taxpayers in the bottom 95 percent of the income distribution would see average after-tax incomes increase between 0.5 and 1.2 percent," the TPC's report said. "Taxpayers in the top 1 percent (incomes above $730,000), would receive about 50 percent of the total tax benefit; their after-tax income would increase an average of 8.5 percent."

Trump has repeatedly said the tax plan would not unfairly benefit the wealthy. "I think the wealthy will be pretty much where they are, pretty much where they are," Trump said at a bipartisan meeting on tax reform on September 13. The analysis also estimates the plan would increase the federal deficit by $2.4 trillion in the first decade after its implementation.

Trump tax reform plan: Tax Policy analysis shows lower taxes for rich - Business Insider

Here is another way to put that:

The richest 1 percent — households making at least $732,800 — would get an average tax cut of $129,030, the analysis finds. For the typical one-percenter (who earns much more than $732,800), that means 8.5 percent more income after taxes. The richest 0.1 percent, earning at least $3.4 million a year, would get $722,510 back on average, for a 10.2 percent average boost in after-tax income. By contrast, the middle class (households earning $48,600 to $86,100 a year) would get $660 back, a 1.2 percent income boost. The poorest fifth of Americans, earning $25,000 or less, would only get $60, a 0.5 percent increase.

The numbers are in: Trump's tax plan is a bonanza for the rich, not the middle class - Vox