"Among those in the middle class, almost a quarter would see their taxes go up" if Trump's tax proposals are enacted, argued the Washington Post's Max Ehrenfreund. (Photo: Michael Fleshman/Flickr/cc)
Trump Tax Agenda: 'Astonishing' Cuts for Rich Like Him and Hikes for Middle Class
Trump's tax proposals "would result in an increase in taxes for nearly 1 in 5 American households" while cutting taxes drastically for the wealthiest Americans
As Trumpcare withers away in the Senate in the face of fierce grassroots opposition, two new analyses published on Wednesday show that President Donald Trump's tax agenda--billed as his next big domestic endeavor--would primarily benefit Trump himself and other wealthy Americans while pushing a larger share of the tax burden onto middle class families.
"The top 0.1 percent, earning above $3.4 million a year, would get an average tax cut of $937,700, or a 13.3 percent boost in after-tax income."
--Dylan Matthews, Vox
Although Trump has yet to release a detailed version of his tax plan, a new analysis by the nonpartisan Tax Policy Center (TPC), released Wednesday, concludes the proposals his administration has floated so far would, if enacted, "provide the bulk of the benefits to the highest-income households."
TPC found that under Trump's tax plan, around "40 percent of the tax cut would flow to households in the top one percent of the income distribution, giving those earners an annual tax cut of around $270,000."
In this regard, Trump's tax agenda is perfectly in line with the Senate GOP's healthcare bill, which would provide hefty tax cuts to the ultra-rich while deeply slashing Medicaid.
As Americans for Tax Fairness (ATF) found in a study also published on Wednesday, among the principle beneficiaries of the Senate's plan would be Trump himself.
ATF estimated that "President Trump could get a personal tax cut of between $1.4 million and $2.8 million a year" if Republicans succeed in repealing the Net Investment Income Tax, a key Obamacare tax aimed at the rich.
"Now we know how much President Trump stands to benefit personally if Republicans eliminate just one tax on the wealthy under the Affordable Care Act," said AFT executive director Frank Clemente. "Instead of giving himself a tax cut worth up to $2.8 million, the president should keep his campaign promises not to cut Medicaid and Medicare."
Trump and his advisers have attempted to characterize their overall tax agenda as one that would provide benefits to all, and not just the top one percent.
Analyzing TPC's new report for the Washington Post, Max Ehrenfreund argues that this is far from the case. In fact, he notes, TPC's data demonstrates that Trump's plan "would result in an increase in taxes for nearly 1 in 5 American households."
"And among those in the middle class, almost a quarter would see their taxes go up," Ehrenfreund notes. "For households with annual incomes between $49,000 and $86,000, those facing a hike would see an average annual increase of $1,000."
For those lower-income families that would see tax cuts under Trump's plan, they would be nearly undetectable compared to those lavished upon the wealthiest Americans.
Vox's Dylan Matthews observed that "the overall plan would give the average family earning under $25,000 per year a $40 tax cut, or a 0.3 percent boost in after-tax income. The top 0.1 percent, earning above $3.4 million a year, would get an average tax cut of $937,700, or a 13.3 percent boost in after-tax income."
Matthews continued:
If you just look at the tax cuts he's proposing, 60.9 percent of the benefits go to the top 1 percent of Americans. That's a pretty astonishing tilt toward the rich. But if you look at the combined effects of the cuts and the revenue raisers, 76.3 percent of the benefits go to the top 1 percent, and 94.8 percent go to the top 5 percent.
Michael Linden, a fellow at the Roosevelt Institute, broke Trump's tax agenda down into three simple bullet points:
We are at a crossroads
This country and this world are at a monumental crossroads. In a few short weeks, US voters will have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. Our Fall Campaign is underway, and we need your help. To power our newsroom through the rest of the year, we need to raise $125,000 by midnight on October 31. So if you share our vision, please contribute whatever you can to sustain our work. |
As Trumpcare withers away in the Senate in the face of fierce grassroots opposition, two new analyses published on Wednesday show that President Donald Trump's tax agenda--billed as his next big domestic endeavor--would primarily benefit Trump himself and other wealthy Americans while pushing a larger share of the tax burden onto middle class families.
"The top 0.1 percent, earning above $3.4 million a year, would get an average tax cut of $937,700, or a 13.3 percent boost in after-tax income."
--Dylan Matthews, Vox
Although Trump has yet to release a detailed version of his tax plan, a new analysis by the nonpartisan Tax Policy Center (TPC), released Wednesday, concludes the proposals his administration has floated so far would, if enacted, "provide the bulk of the benefits to the highest-income households."
TPC found that under Trump's tax plan, around "40 percent of the tax cut would flow to households in the top one percent of the income distribution, giving those earners an annual tax cut of around $270,000."
In this regard, Trump's tax agenda is perfectly in line with the Senate GOP's healthcare bill, which would provide hefty tax cuts to the ultra-rich while deeply slashing Medicaid.
As Americans for Tax Fairness (ATF) found in a study also published on Wednesday, among the principle beneficiaries of the Senate's plan would be Trump himself.
ATF estimated that "President Trump could get a personal tax cut of between $1.4 million and $2.8 million a year" if Republicans succeed in repealing the Net Investment Income Tax, a key Obamacare tax aimed at the rich.
"Now we know how much President Trump stands to benefit personally if Republicans eliminate just one tax on the wealthy under the Affordable Care Act," said AFT executive director Frank Clemente. "Instead of giving himself a tax cut worth up to $2.8 million, the president should keep his campaign promises not to cut Medicaid and Medicare."
Trump and his advisers have attempted to characterize their overall tax agenda as one that would provide benefits to all, and not just the top one percent.
Analyzing TPC's new report for the Washington Post, Max Ehrenfreund argues that this is far from the case. In fact, he notes, TPC's data demonstrates that Trump's plan "would result in an increase in taxes for nearly 1 in 5 American households."
"And among those in the middle class, almost a quarter would see their taxes go up," Ehrenfreund notes. "For households with annual incomes between $49,000 and $86,000, those facing a hike would see an average annual increase of $1,000."
For those lower-income families that would see tax cuts under Trump's plan, they would be nearly undetectable compared to those lavished upon the wealthiest Americans.
Vox's Dylan Matthews observed that "the overall plan would give the average family earning under $25,000 per year a $40 tax cut, or a 0.3 percent boost in after-tax income. The top 0.1 percent, earning above $3.4 million a year, would get an average tax cut of $937,700, or a 13.3 percent boost in after-tax income."
Matthews continued:
If you just look at the tax cuts he's proposing, 60.9 percent of the benefits go to the top 1 percent of Americans. That's a pretty astonishing tilt toward the rich. But if you look at the combined effects of the cuts and the revenue raisers, 76.3 percent of the benefits go to the top 1 percent, and 94.8 percent go to the top 5 percent.
Michael Linden, a fellow at the Roosevelt Institute, broke Trump's tax agenda down into three simple bullet points:
As Trumpcare withers away in the Senate in the face of fierce grassroots opposition, two new analyses published on Wednesday show that President Donald Trump's tax agenda--billed as his next big domestic endeavor--would primarily benefit Trump himself and other wealthy Americans while pushing a larger share of the tax burden onto middle class families.
"The top 0.1 percent, earning above $3.4 million a year, would get an average tax cut of $937,700, or a 13.3 percent boost in after-tax income."
--Dylan Matthews, Vox
Although Trump has yet to release a detailed version of his tax plan, a new analysis by the nonpartisan Tax Policy Center (TPC), released Wednesday, concludes the proposals his administration has floated so far would, if enacted, "provide the bulk of the benefits to the highest-income households."
TPC found that under Trump's tax plan, around "40 percent of the tax cut would flow to households in the top one percent of the income distribution, giving those earners an annual tax cut of around $270,000."
In this regard, Trump's tax agenda is perfectly in line with the Senate GOP's healthcare bill, which would provide hefty tax cuts to the ultra-rich while deeply slashing Medicaid.
As Americans for Tax Fairness (ATF) found in a study also published on Wednesday, among the principle beneficiaries of the Senate's plan would be Trump himself.
ATF estimated that "President Trump could get a personal tax cut of between $1.4 million and $2.8 million a year" if Republicans succeed in repealing the Net Investment Income Tax, a key Obamacare tax aimed at the rich.
"Now we know how much President Trump stands to benefit personally if Republicans eliminate just one tax on the wealthy under the Affordable Care Act," said AFT executive director Frank Clemente. "Instead of giving himself a tax cut worth up to $2.8 million, the president should keep his campaign promises not to cut Medicaid and Medicare."
Trump and his advisers have attempted to characterize their overall tax agenda as one that would provide benefits to all, and not just the top one percent.
Analyzing TPC's new report for the Washington Post, Max Ehrenfreund argues that this is far from the case. In fact, he notes, TPC's data demonstrates that Trump's plan "would result in an increase in taxes for nearly 1 in 5 American households."
"And among those in the middle class, almost a quarter would see their taxes go up," Ehrenfreund notes. "For households with annual incomes between $49,000 and $86,000, those facing a hike would see an average annual increase of $1,000."
For those lower-income families that would see tax cuts under Trump's plan, they would be nearly undetectable compared to those lavished upon the wealthiest Americans.
Vox's Dylan Matthews observed that "the overall plan would give the average family earning under $25,000 per year a $40 tax cut, or a 0.3 percent boost in after-tax income. The top 0.1 percent, earning above $3.4 million a year, would get an average tax cut of $937,700, or a 13.3 percent boost in after-tax income."
Matthews continued:
If you just look at the tax cuts he's proposing, 60.9 percent of the benefits go to the top 1 percent of Americans. That's a pretty astonishing tilt toward the rich. But if you look at the combined effects of the cuts and the revenue raisers, 76.3 percent of the benefits go to the top 1 percent, and 94.8 percent go to the top 5 percent.
Michael Linden, a fellow at the Roosevelt Institute, broke Trump's tax agenda down into three simple bullet points: