Donald Trump's big tax cuts to dent Federal revenues
By Staff Writer
The four-page tax plan put forward by the Republican Presidential candidate Donald Trump has been drawing flak from analysts. The latest analysis on Trump's tax plan reveals that it would reduce the Federal revenues by $9.5 trillion in a decade.
The analysis report has stated that Trump's tax cut plan would benefit rich people than middle-income groups.
Tax Policy Center has analyzed Donald Trump's tax plan and released its report. The Tax Policy Center states that neither of Trump's assertions is falling in line with reality not it would benefit the government. Trump has assured that his tax plan ensures economic growth and it would compensate any potential loss in revenue from tax cuts.
CNN Money reports that Trump has proposed to bring down seven income tax rates to three. The current seven slabs include high rates of 39.6%, 35%, 33% and 28%. Trump wants to bring to three slabs of 10%, 20% and 25%.
The Tax Policy Center's analysis states that middle-income households get a benefit of $2,700 or 4.9% after tax income. The rich in top 0.1percent will get an average of $1.3 million or 19 percent after tax income. The biggest benefit would go to the higher income people.
Trump's tax plan was first released in September. The tax plan would reduce 22 percent of Federal revenue in the next 10 years. It'll drastically shrink the government revenues.
Donald Trump, a billionaire real estate developer, has proposed the most aggressive tax restructuring plan, when compared to all the remaining Presidential candidates, said, the Tax Policy Center.
The tax plan proposed by Donald Trump is expected to reduce Federal revenues by $9.5 trillion over a period of 10 years.
The Wall Street Journal (WSJ) has published a report on the analysis made by Tax Policy Center. Trump's plan would exempt millions of lower income people. This would put pressure on the government to go for additional borrowing or slash spending, said the report.
"The revenue losses from this plan are really enormous," said Leonard Burman, Director, Tax Policy Center, a nonpartisan project of the Brookings Institution and the Urban Institute.
According to a report by Market Watch, several Republican Presidential candidates are announcing different tax cuts plan as they're competing with each other. However, Donald Trump's plan is the biggest tax cut plan so far. It's 41 percent bigger than Jeb Bush's plan, according to the Center.
Trump has also proposed to increase standard deduction to $25,000 for single taxpayers and $50,000 for married couples. It's four-fold rise from the existing standard deduction.
The Tax Policy Center's analysis report also stated that investment fund managers would get a windfall under Trump's plan. Tax Policy Center claimed that Trump never responded to its questions on his proposals.