For Immediate Release
New Analysis: Trump's Unpaid-for Tax Cuts May Total $5 Trillion.
Failure To Pay for Cuts by Closing Tax Loopholes May Put SOCIAL SECURITY, MEDICARE, MEDICAID, and EDUCATION on the Chopping Block.
WASHINGTON - As President Trump and Republican leaders in Congress prepare to unveil their tax plan on Wednesday, Sept. 27, Americans for Tax Fairness has prepared an analysis that shows Trump’s tax cuts could total $6.7 to $8.3 trillion, $3 to $5 trillion of which may not be paid for by closing other tax loopholes and/or by limiting tax deductions. The resulting jump in the deficit threatens funding of Social Security, Medicare, Medicaid, public education and other vital services. This analysis is based on recent media reports identifying possible tax cuts under consideration by the “Big Six” of Trump Administration and Congressional negotiators, and on the tax-cutting priorities President Trump and House Republican leaders have emphasized in tax plans unveiled over the past year.
The table below summarizes many of the tax cuts that are likely to be in the Trump-Republican leaders’ tax plan, along with estimates of their considerable costs. Assuming the tax plan reflects recent media reports and high-priority tax cuts included in their earlier tax plans, with some modifications, the new tax plan is likely to:
- Provide massive tax cuts that largely benefit the richest Americans and biggest corporations—through direct tax cuts and indirectly through big cuts in corporate taxes, 80% of which benefit wealthier Americans, according to the non-partisan Tax Policy Center.
- Provide a modest middle-class tax cut, largely by doubling the standard deduction, although much of that could be taken away if the tax plan repeals the personal exemption and the head of household filing status.
- Not come close to being paid for by closing tax loopholes, which will likely result in deep cuts now or next year to Social Security, Medicare, Medicaid, public education and many other priorities working families depend on. These cuts were outlined in President Trump’s FY2018 budget, which proposed $4.3 trillion in cuts to Social Security, Medicaid, public education and other non-defense programs; and in the House budget, which proposed $5.8 trillion in cuts to Medicare, Medicaid public education and other non-defense programs and that is awaiting floor action.
“The idea that this plan would help average Americans instead of the wealthy and big corporations has been a hoax all along,” said Frank Clemente, executive director, Americans for Tax Fairness. “This isn’t ‘tax reform,’ it’s just a big giveaway to millionaires and corporations, and it won’t ‘trickle down’ to the rest of us. It won’t help small businesses, but it will help Wall Street hedge fund managers and real estate moguls like Donald Trump. This plan will not lead to robust job creation or economic growth, but its eye-popping cost will lead to deep cuts in Social Security, Medicaid, Medicare, and public education that will leave working families in the cold.”
ESTIMATES OF COSTS OF THE TRUMP & CONGRESSIONAL LEADERS’ TAX PLAN
Note about cost estimates, which are mostly from the non-partisan Tax Policy Center: Tax cuts are ten-year estimates except where noted. Italicized cost estimates are tax cuts that have been mentioned in recent news reports.
Clickable version of chart and footnotes can be found here:
Americans for Tax Fairness (ATF) is a diverse campaign of more than 425 national, state and local endorsing organizations united in support of a fair tax system that works for all Americans. It has come together based on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. This requires big corporations and the wealthy to pay their fair share in taxes, not to live by their own set of rules.