September, 28 2017, 02:00pm EDT
For Immediate Release
Contact:
Chris Fleming,Email:,chris@redhorsestrategies.com
Worst Features Of The Trump-Ryan Tax Plan
WASHINGTON
This analysis is based on the tax plan framework released by Republican leaders Sept. 27, 2017. The plan is very similar to earlier ones by President Trump and House Speaker Ryan, which were analyzed by the non-partisan Tax Policy Center and form the basis of this analysis.[1]
- The Trump-Ryan tax plan is not tax "reform," but massive tax cuts for the wealthy and corporations that will jeopardize Social Security, Medicare, Medicaid and public education. Based on earlier Trump and Ryan plans cost estimates, the plan could cut taxes by a total of $6.7 to $8.3 trillion, of which $3 to $5 trillion may not be paid for by closing tax loopholes and limiting deductions.[2] The resulting jump in the deficit would increase the likelihood of deep cuts to Social Security, healthcare, education and other services. Such cuts are in Trump's 2018 budget, which slashes $4.3 trillion from Social Security, Medicaid, education and other services. Ryan's House budget slashes $5.8 trillion from Medicare, Medicaid education, and other services.[3]
- The wealthy and corporations will get most of the tax cuts at the expense of working families who rely on Social Security, Medicare, Medicaid, and public education. Under Trump's previous tax plan, the richest 1% would get half of the tax cuts, or $175,000 each year, on average.[4] His plan required one-quarter of middle-class families to pay more in taxes.[5] Under Ryan's earlier plan, the richest 1% would get more than 99% of the tax cuts once fully enacted, with a $240,000 tax cut each year, on average.[6]
CORPORATE TAX CUTS
- Corporate tax rates are slashed by more than 40%--from 35% to 20%--losing $1.8 trillion over 10 years.[7] Corporations need to pay their fair share not get a tax cut. Corporate profits are at near record highs, while corporate tax revenues are at record lows.[8] Profitable corporations are paying a U.S. tax rate of just 14%, according to the non-partisan Government Accountability Office.[9] Many pay nothing for years.[10] Only $1 out of $9 of federal revenue now comes from corporate taxes; in the mid-20th century it was $1 out of $3.[11] Moreover, 80% of corporate tax cuts benefit wealthier Americans.[12]
- Trump-Ryan slashes the top tax rate on business income from hedge funds, law firms, real estate firms like Trump's, and other "pass-through" businesses from 39.6% to 25%, losing $390 to $660 billion.[13] Many of these big-money outfits organize as partnerships or other business entities that allow them to pay business taxes at individual rates. Claims that this is a small business tax cut is a hoax: Just 4% of pass-through business owners will get a tax cut from the new top 25% rate, as everyone else already pays that rate or less. The top one-tenth of 1% will get a tax cut of $270,000, on average.[14] As the sole or principal owner of 500 pass-through entities,[15] Trump will benefit handsomely,[16] from what's been aptly dubbed the "Trump Loophole."[17]
- Trump-Ryan temporarily (for at least five years) allows corporations to immediately write off big purchases, which could lose $900 billion to $2.2 trillion.[18] Businesses would be allowed to immediately write off--or fully "expense"--the total cost of big-ticket purchases such as vehicles, equipment, and buildings. Currently, they may deduct (or depreciate) only a portion of the expense each year over a multi-year period to reflect the progressive decline in the property's value. The wide cost range comes from uncertainty as to the tax cut's economic effect. Though this is a 10-year estimate, the bulk of the revenue loss occurs in the first five years.[19] The Tax Policy Center has questioned claims about the supposed economic boost from full expensing, suggesting expensing could retard growth.[20]
- Trump-Ryan potentially allows American corporations to dodge all U.S. taxes on foreign profits through a territorial tax system. Under such a system, U.S. corporations would no longer pay taxes on profits booked offshore (although Trump's plan suggests there may be a minimum tax on profits in tax havens). A territorial system will encourage multinationals to shift even more profits and jobs offshore than they do now.[21] Analysis of a similar plan found a territorial tax system would lose $205 billion over 10 years.[22]
- Multinational corporations with profits stashed offshore could get a $600 billion tax cut. Big American corporations hold $2.6 trillion in profits offshore on which they owe about $750 billion in U.S. taxes.[23] The new plan promises a big tax break on these profits, but it does not indicate the tax rate. Trump previously proposed cutting the rate from 35% to just 10% on cash and only 4% on non-cash assets, raising about $150 billion.[24] So, tax-dodging multinationals could get an undeserved tax break of about $600 billion. They should instead pay what they owe, just like working families and small businesses do.
INDIVIDUAL TAX CHANGES
- The top tax rate on individuals would be lowered from 39.6% to 35%, and six other tax brackets would shrink to just two, losing $2 trillion.[25] The new brackets are 12%--an increase on lower income Americans from the current 10% rate--25%, and 35%. The reduction in the top rate will help give a $270,000 average tax cut to the Top 1%, which was estimated under Trump's earlier tax plan.[26] The top 0.1% would get a $1.4 million tax cut, on average.
- The alternative minimum tax (AMT) would be repealed allowing wealthy taxpayers like Trump to use excessive deductions and other loopholes to sharply reduce or eliminate their tax bill, losing $445 billion.[27] Trump could benefit massively: In 2005, the one year for which his tax returns have been made public, he made $153 million and paid $38 million in federal income taxes for a tax rate of 25%.[28] Without the AMT, he would have paid just $5 million in federal income taxes, a tax rate of less than 4%.[29] That rate is less than the lowest-income Americans often pay.[30]
- Trump-Ryan eliminates estate and gift taxes, losing $239 billion and boosting the inheritances of millionaires and billionaires.[31] The federal estate tax is paid only by estates worth at least $5.5 million, just 1 in 500 estates,[32] or only 5,500 estates in all of 2017.[33] Assuming Trump is worth the $10 billion he claims, his heirs could gain billions if his plan is adopted.[34]
- Trump-Ryan repeals the deduction for state and local taxes (SALT), raising taxes on the middle class and undermining local public services. Taxpayers can deduct state and local property taxes, and either income or sales taxes, from their federal taxable income. Over a third of taxpayers making $50-75,000 use the SALT deduction, and over half of those making $75-100,000.[35] An average family in this last group would see their federal taxes jump by $1,800 if SALT is repealed.[36] Repealing SALT would increase federal revenue by $1.3 trillion over 10 years.[37] In addition to boosting taxes on the middle class, repeal of the SALT deduction will make local taxation more expensive, putting pressure on localities to cut budgets for services like roads and schools.
- Trump-Ryan pulls a bait-and-switch with tax provisions working families rely on, increasing the standard deduction while eliminating the personal exemption, ultimately leaving many families worse off. Taxpayers who don't itemize their deductions (which under this plan may be limited to charitable contributions and mortgage interest) this year can deduct from their reportable income $6,350 for an individual and $12,700 for a married couple.[38] The plan would roughly double those amounts to $12,000 and $24,000, losing $708 billion.[39] At the same time, the plan repeals the personal exemption, which reduces reportable income by $4,050 this year for each member of a household. Even with the increased standard deduction, without the personal exemption many large families, and especially those headed by a single parent, would pay more.[40] A Tax Policy Center analysis found that Trump's earlier tax plan would increase taxes for about 8.7 million families--20% of households and more than half of all single-parents.[41] That analysis assumed a much higher standard deduction, which means even more families will experience a tax increase under the Trump-Ryan plan.
ENDNOTES
[1] Tax Policy Center (TPC), "The Implications of What We Know and Don't Know About President Trump's Tax Plan" (July 12, 2017). https://www.taxpolicycenter.org/sites/default/files/publication/142616/implications_of_what_we_know_and_dont_know_about_president_trumps_plan_1.pdf. TPC, "Dynamic Analysis of the House GOP Tax Plan: An Update" (June 30, 2017). https://www.taxpolicycenter.org/sites/default/files/publication/142556/2001397-dynamic-scoring-of-tax-plans-and-analysis-of-the-house-gop-plan.pdf
[2] Americans for Tax Fairness, "Updated Analysis: Trump's Unpaid-For Tax Cuts May Total $5 Trillion in New Tax Plan" (Sept. 27, 2017). https://americansfortaxfairness.org/new-analysis-trumps-unpaid-tax-cuts-may-total-5-trillion-new-tax-plan/
[3] Center on Budget & Policy Priorities (CBPP), "Trump Budget Gets Three-Fifths of Its Cuts from Programs for Low- and Moderate-Income People" (May 30, 2017). https://www.cbpp.org/research/federal-budget/trump-budget-gets-three-fifths-of-its-cuts-from-programs-for-low-and#_ftn1. CBPP, "House GOP Budget Cuts Programs Aiding Low- and Moderate-Income People by $2.9 Trillion Over Decade" (Sept. 5, 2017). https://www.cbpp.org/research/federal-budget/house-gop-budget-cuts-programs-aiding-low-and-moderate-income-people-by-29
[4] TPC, "The Implications of...Trump's Tax Plan," Table 4 and p. 9.
[5] Ibid. Table 4 showing that 23.8% of tax units in the middle quintile would experience increased taxes.
[6] TPC "An Analysis of the House GOP Tax Plan" (Sept. 16, 2016), Table 5. https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/2000923-An-Analysis-of-the-House-GOP-Tax-Plan.pdf
[7] TPC, "Dynamic Analysis of the House GOP Tax Plan," Table 5. Amount includes repealing the corporate Alternative Minimum Tax (AMT).
[8] Estimates are measured as a share of the economy/GDP. Americans for Tax Fairness andEconomic Policy Institute, "Corporate Tax Chartbook: How Corporations Rig the Rules to Dodge the Taxes They Owe" (Sept. 2016), Figure 2. https://www.epi.org/publication/corporate-tax-chartbook-how-corporations-rig-the-rules-to-dodge-the-taxes-they-owe/
[9] Government Accountability Office, "Corporate Income Tax" (March 2016). Https://Www.Gao.Gov/Products/Gao-16-363
[10] Institute on Taxation and Economic Policy (ITEP), "The 35 Percent Corporate Tax Myth" (March 2017), p. 4. https://itep.org/wp-content/uploads/35percentfullreport.pdf
[11] Office of Management and Budget (OMB), Historical Tables, "Table 2.2: Percentage Composition of Receipts by Source." https://www.whitehouse.gov/omb/budget/Historicals
[12] TPC, "WouldWorkers Benefit from A Corporate Tax Cut? Not Much" (Sept. 8, 2017). https://www.taxpolicycenter.org/taxvox/would-workers-benefit-corporate-tax-cut-not-much
[13] TPC, "Options to Reduce the Taxation of Pass-through Income" (May 15, 2017), p. 6. https://www.taxpolicycenter.org/sites/default/files/publication/141541/options-to-reduce-the-taxation-of-pass-through-income.pdf
[14] TPC, "Options to Reduce the Taxation of Pass-through Income," p. 8.
[15] Letter toDonald Trump from tax attorneys Morgan, Lewis & Bockius (Mar. 7, 2016). https://assets.donaldjtrump.com/Tax_Doc.pdf
[16] The Washington Post, "Donald Trump's New Tax Plan Could Have a Big Winner: Donald Trump's Companies" (Aug. 10, 2016). https://www.washingtonpost.com/news/wonk/wp/2016/08/10/donald-trumps-new-tax-plan-could-have-a-big-winner-donald-trumps-companies/
[17] CNN, "Hillary Clinton Slams 'Trump Loophole'" (Aug. 11, 2016). https://money.cnn.com/2016/08/11/pf/taxes/hillary-clinton-donald-trump-loophole/
[18] The Tax Foundation, "Full Expensing Costs Less than You'd Think" (June 13, 2017). https://taxfoundation.org/full-expensing-costs-less-than-youd-think/ These cost estimates are based on current tax rates. If corporate tax rates are reduced, the cost of this tax break would decline.
[19] Ibid.
[20] TPC, "A Business Cash Flow Tax Could Reduce Investment, Contrary to What Some Economists Think" (Jan. 24, 2017). https://www.taxpolicycenter.org/taxvox/business-cash-flow-tax-could-reduce-investment-contrary-what-some-economists-think
[21] ITEP, "Turning Loopholes into Black Holes: Trump's Territorial Tax Proposal Would Increase Corporate Tax Avoidance" (Sept. 6, 2016). https://itep.org/turning-loopholes-into-black-holes-trumps-territorial-tax-proposal-would-increase-corporate-tax-avoidance/
[22] TPC, "An Analysis of Marco Rubio's Tax Plan" (Feb. 11, 2016), p. 10. https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/2000606-an-analysis-of-marco-rubios-tax-plan.pdf
[23] ITEP, "Fortune 500 Companies Hold a Record $2.6 Trillion Offshore" (March 2017), p. 1. https://www.itep.org/pdf/pre0327.pdf
[24] TPC, ""The Implications of...Trump's Tax Plan," Table 2. See "Deemed repatriation rate on accumulated offshore earnings."
[25] Ibid. See "Individual income tax rates of 10, 25, and 35%."
[26] Ibid., Table 3.
[27] TPC, "The Implications of...Trump's Tax Plan," Table 2.
[28] The New York Times (NYT), "Trump Wrote Off $100 Million in Losses in 2005, Leaked Form Shows" (March 14, 2017). https://nyti.ms/2pmUkEH
[29] NYT, "A.M.T., Which Hit Trump in 2005, Is No One's Favorite" (March 15, 2017). https://www.nytimes.com/2017/03/15/business/economy/trump-alternative-minimum-tax.html
[30] TPC, "Historical Average Federal Tax Rates for All Households." https://www.taxpolicycenter.org/statistics/historical-average-federal-tax-rates-all-households
[31] TPC, "The Implications of...Trump's Tax Plan," Table 2. See "Repeal the estate, gift and GST taxes."
[32] CBPP, "Ten Facts You Should Know About the Federal Estate Tax" (Sept. 8, 2016). https://www.cbpp.org/research/ten-facts-you-should-know-about-the-federal-estate-tax
[33] TPC, "Briefing Book: Who pays the estate tax?" https://www.taxpolicycenter.org/briefing-book/who-pays-estate-tax
[34] The Detroit News, "Clinton: Trump Plan to Ax Estate Tax Saves His Family $4B" (Aug. 11, 2016). https://www.detroitnews.com/story/news/politics/2016/08/10/clinton-warren-economy/88546136/
[35] Government Finance Officers Association, "The Impact of Eliminating the State and Local Tax Deduction" (Using 2015 IRS data), p. 6. https://www.gfoa.org/sites/default/files/GFOA_SALT_09202017.pdf
[36] Ibid., p. 8.
[37] TPC, "Revisiting The State and Local Tax Deduction" (Mar. 31, 2016), p. 2. https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/2000693-Revisiting-the-State-and-Local-Tax-Deduction.pdf
[38] IRS.gov, "In 2017, Some Tax Benefits Increase Slightly Due to Inflation Adjustments, Others Are Unchanged." https://www.irs.gov/newsroom/in-2017-some-tax-benefits-increase-slightly-due-to-inflation-adjustments-others-are-unchanged
[39] TPC, "The Implications of...Trump's Tax Plan," Table 2. See "Double standard deduction."
[40] Center for American Progress, "How Middle-Class and Working Families Could Lose Under the Trump Tax Plan" (June 13, 2017). https://www.americanprogress.org/issues/economy/reports/2017/06/13/434054/middle-class-working-families-lose-trump-tax-plan/
[41] TPC, "Families Facing Tax Increases Under Trump's Tax Plan" (Oct. 28, 2016). https://www.taxpolicycenter.org/sites/default/files/publication/135696/2000983-Families-Facing-Tax-Increases-Under-Trumps-Plan.pdf
Americans for Tax Fairness (ATF) is a diverse campaign of more than 420 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.
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Anthropic CEO 'Cannot in Good Conscience Accede' to Pentagon's AI Demand
"Anthropic and Dario deserve credit for standing up for two very basic and obvious principles: no mass surveillance and no autonomous killer robots," said one progressive commentator.
Feb 26, 2026
Defense Secretary Pete Hegseth gave Anthropic until Friday evening to agree to let the Pentagon use the company's artificial intelligence technology however it wants, or else. Roughly 24 hours ahead of the deadline, CEO Dario Amodei announced that "we cannot in good conscience accede to their request," and reiterated opposition to enabling autonomous weapons or surveillance of US citizens.
Anthropic's Claude was the first AI model allowed to handle classified US military data. While the Department of Defense (DOD) has now signed an agreement with Elon Musk's xAI and "is getting close to making a deal with Google," as the New York Times reported Monday, Hegseth demanded "unfettered" access to Claude during a Tuesday meeting with Amodei.
Hegseth threatened to declare the Anthropic a "supply chain risk," effectively blacklisting it for military use and ending its current contract, or invoke the Defense Production Act, which would force Anthropic to tailor the product to the DOD’s needs, if Amodei refused to drop the company's guardrails.
The CEO responded publicly with a Thursday blog post. Using President Donald Trump's preferred name for the Pentagon, he wrote that "Anthropic understands that the Department of War, not private companies, makes military decisions. We have never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner."
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Amodei concluded by expressing hope that the Pentagon revises its position, writing that "our strong preference is to continue to serve the department and our warfighters—with our two requested safeguards in place. Should the department choose to offboard Anthropic, we will work to enable a smooth transition to another provider, avoiding any disruption to ongoing military planning, operations, or other critical missions."
Amodei's blog post followed CBS News reporting earlier Thursday that "Pentagon officials on Wednesday night sent Anthropic their best and final offer in negotiations for use of the company's artificial intelligence technology."
It also came just hours after Pentagon spokesperson Sean Parnell responded to a related post from a Google scientist on Musk's social media platform X. The DOD official claimed that "the Department of War has no interest in using AI to conduct mass surveillance of Americans (which is illegal) nor do we want to use AI to develop autonomous weapons that operate without human involvement. This narrative is fake and being peddled by leftists in the media."
"Here's what we're asking: Allow the Pentagon to use Anthropic's model for all lawful purposes. This is a simple, commonsense request that will prevent Anthropic from jeopardizing critical military operations and potentially putting our warfighters at risk. We will not let ANY company dictate the terms regarding how we make operational decisions," Parnell added, noting the Friday deadline and the threat to "terminate our partnership with Anthropic and deem them a supply chain risk."
While Amodei and observers await the Pentagon's next move, several Anthropic employees, other tech experts, and critics of the Trump administration praised the CEO for "standing on principle" and choosing "war with the Department of War."
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The US Department of Labor (DOL) proposed an independent contractor rule that the National Employment Law Project (NELP) called "yet another example of the administration siding with major corporations and stacking the deck against working people" by "effectively allowing employers to strip workers of federal minimum wage and overtime protections."
The DOL's Wage and Hour Division proposal would replace the Biden administration's widely celebrated 2024 policy for when employers can treat workers as independent contractors under the Fair Labor Standards Act with business-friendly guidance that resembles a rule adopted just before the end of Trump's first term.
"This rule will have profound real-world consequences for working people," warned NELP. "Misclassification is common in many labor-intensive, poorly paid jobs—jobs like home healthcare, janitorial work, landscaping, personal services, and increasingly, app-dispatched ride-hail and delivery—where people of color and immigrants are overrepresented, and workers lack the bargaining power to negotiate higher wages and better working conditions."
NELP pointed to research showing that low-paid independent contractors "lag behind their employee counterparts," and some "do not even earn the federal minimum wage." The organization stressed that "this rule threatens to enshrine a two-tiered labor system where similarly situated workers receive vastly different rights and protections based on the classification chosen by the business employing them."
The new rule—which now faces a 60-day public comment period—focuses on two "core factors" to determine an employee's classification: the nature and degree of control over the work, and the worker's opportunity for profit or loss based on initiative or investment.
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"In app-dispatched ride-hail and delivery jobs, for example, corporations like Uber, Lyft, DoorDash, and Amazon use apps and algorithms to offer shifts or assignments to so-called independent contractors doing the core work of the business, set the wages these workers receive, surveil and assess their performance, and determine if they are offered future assignments or get 'deactivated,'" the group noted. "App-based ride-hail and delivery workers perform difficult and dangerous work without basic employment protections like the right to minimum wage and overtime, workers' compensation, and unemployment insurance."
As NELP and other critics sounded the alarm over the DOL proposal on Thursday, the National Labor Relations Board (NLRB) also revived an effort from Trump's first term, reinstating that administration's 2020 rule on joint employers.
During Trump's initial administration, the NLRB required joint employers to "possess and exercise substantial direct and immediate control" over at least one aspect of the workers' employment. In 2023, under former President Joe Biden, the board decided that two or more entities could be considered joint employers if they had an employment relationship with the workers and helped to determine their terms and conditions of employment. However, the latter was blocked by a Trump-appointed judge the next year.
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US Sen. Patty Murray (D-Wash.), a senior member and former chair of the Senate Health, Education, Labor, and Pensions Committee, declared in a Thursday statement that "every day, little by little, the Trump administration is rigging the system to benefit giant corporations and shortchange workers—it's an outright grift and working people should be furious."
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Murray isn't up for reelection in November's closely watched midterms, but could lead the Senate Appropriations Committee if Democrats reclaim the chamber. On Thursday, she vowed that "I am going to keep fighting for laws on the books that protect workers and build an economy that grows the middle-class, not just profit margins for the largest corporations on Earth."
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The Tuesday report from the Committee to Protect Journalists says that the Israeli military has cumulatively killed more journalists than any other government since CPJ started tracking reporter deaths in 1992, with the vast majority being Palestinian media workers in Gaza.
The report also finds an increase in the use of drones to attack journalists, with Israel accounting for more than 70% of the 39 documented instances of reporters killed by drone strikes.
The number of journalists killed by Israel is remarkably high even when compared to the number of journalists killed in other conflict zones.
Only nine journalists were killed in Sudan, for example, while just four journalists were killed in Ukraine, despite both countries being in the midst of brutal conflicts that have collectively killed hundreds of thousands of people.
A report issued in December by Reporters Without Borders similarly found that Israel was responsible for the most journalists deaths in 2025, the third consecutive year that the country had held that distinction.
The CPJ report also points the finger at governments for not taking their responsibilities to protect journalists seriously.
"The rising number of journalist deaths globally is fueled by a persistent culture of impunity," the report states. "Very few transparent investigations have been conducted into the 47 cases of targeted killings (classified as 'murder' in CPJ’s longstanding methodology) documented by CPJ in 2025—the highest number of journalists deliberately killed for their work in the past decade—and no one has been held accountable in any of the cases."
CPJ CEO Jodie Ginsberg said that attacks on the media are "a leading indicator of attacks on other freedoms, and much more needs to be done to prevent these killings and punish the perpetrators," adding that "we are all at risk when journalists are killed for reporting the news.”
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