Posted on 12/22/2015 4:29:36 PM PST by Libloather
Donald Trump's tax plan would lower federal revenue by $9.5 trillion in its first decade and benefit the wealthy the most, an analysis released Tuesday found.
The Republican presidential candidate's plan, released in September, calls for lowering the top individual tax rate to 25 percent from 39.6 percent and the corporate tax rate to 15 percent from 35 percent.
The plan would cut the amount of money coming into the federal government. Most of the revenue loss would come from the tax cuts for individuals, but $3.5 trillion of the loss would come from business income tax cuts, the Urban-Brookings Tax Policy Center analysis said.
In its second decade, Trump's plan would lead to revenue losses of $15 trillion. Taking into account additional interest costs, the proposal would add $11.2 trillion to the national debt by 2026 and $34.1 trillion by 2036, according to the report.
"The fundamental concern the plan poses is that, barring extraordinarily large cuts in government spending or future tax increases, it would yield persistently large, and likely unsustainable, budget deficits," the group said.
While the Tax Policy Center pointed out that "Mr. Trump's tax reform plan would boost incentives to work, save, and invest, and has the potential to simplify the tax code," the plan could also increase incentives for workers to characterize themselves as independent contractors so they can use the lower business tax rate.
The largest tax cuts under Trump's plan would go to the wealthy, the analysis found. The top 0.1 percent of taxpayers would receive an average tax cut of more than $1.3 million in 2017, or almost 19 percent of their after-tax income. Middle-income households would receive an average tax cut of $2,700, or 4.9 percent of their after-tax income, according to the report.
Trump's tax plan would result in more lost revenue than the plan of presidential rival Jeb Bush, according to the Tax Policy Center. The group estimated earlier this month that Bush's plan would reduce federal revenues by $6.8 trillion over its first decade.
Donald Trump's tax plan would lower federal revenue by $9.5 trillion in its first decade
The first thing we've gotta think about whenever anyone proposes reducing taxes is how much it's gonna cost.
Are these the same folks who predicted Obamacare would lower the deficit?
Saying that tax cuts “cost” the government implies that all money rightfully belongs to government.
They are not counting the growth in GDP and therefore tax revenue.
That means $9.5 Trillion CUTS in Federal spending!
I have no problem whatsoever with that.
Even better that $9.5 Trillion stays in the pockets of American taxpayers and they can spend it much more productively that the bureaucrats in DC.
And the deficits now are sustainable?
That's all you need to know about this BS analysis.
And your healthcare costs will go down $2500 per family, right?
Obama’s taken us to 20 trillion in debt. Did Republicans do anything to stop that?
Yes the same crew! They are pretty stupid as proven by their calculations for Obamacare.
What a retarded & retrograde way of thinking!
Libs truly believe that a big, fat, bloated gov’t is benevolent to all people no matter what the cost.
It's unsustainable for a this gargantuan sized government which now included *millions* of government bureaucrats on the tax payrolls, not to mention government waste and reckless spending, which has reached the lunar surface and is fast approaching the orbit of Mars.
Americans are being looted by their own government.
In negotiations, always start by demanding much more than you expect to get when you finalize the deal.
Trump has some small experience at making deals.
Donald Trump's tax plan would save taxpayers $9.5 trillion in its first decade
Fixed it.
https://twitter.com/njagoda
From Naomi’s twitter account: http://thehill.com/policy/finance/263767-irs-scores-year-end-funding-boost
GOP congress `punishes’ IRS by increasing their funding by 3%.
What do you get when you reward bad behavior?
Me want wall.
$9.8 Trillion returned to the economy over 10 years? Sounds like a good plan.
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