Is President Donald Trump’s statement earlier this month that “the rich will not be gaining at all with this (proposed tax) plan” true? Will the middle class benefit?
President Trump is looking to overhaul the tax code. He made remarks prior to a September 13 meeting with members from both parties of Congress. The president said he wanted to cut the corporate tax rate from 35 percent to 15 percent and lower individual income taxes.
In April, the one-page “detailed” proposal from the White House included:
The non-partisan Tax Policy Center estimates that middle-income households (earning between $50,000 and $86,000) would see an average tax cut of about $1,900 or 3%. The top 1% of households (earning over $732,000) would get an average tax cut of $270,000 or nearly 18%, and the top 0.1 percent would see a 20 % tax cut.
What the tax cut proposal fails to address is how the government will deal with reduced revenue.