figures explain the impact of Donald Trump's tax
most cases, it’s best
practice to cut through the media noise and go straight to the source
understand what’s happening in public policy. Donald Trump’s tax plan
one of those cases.
president is crisscrossing the country giving speeches to crowds about
to cut taxes on the very wealthy. Of course, he’s not using those
that’s what his plan will do.
to understand what’s in Trump’s latest tax plan, skip the bluster and
straight at the numbers.
figures in particular shed a light on the actual impact of the plan.
plan is essentially a collection of tax cuts for individuals and
the cuts on the individual side, 80 percent of them will go to the
percent, according to the nonpartisan Tax
says he’s out to help the middle class and not the rich, his words are
countering the actual impact of the plan. This could be because he
understand his own plan — a valid possibility.
likely, though, it’s because he’s lying through his bleached teeth.
plan would repeal the federal estate tax, also known as the inheritance
misunderstood portion of the tax code is a levy on the
transfer of immense wealth, and by immense I mean more than $11
the wealthiest 0.2 percent of households will ever pay the tax, an
group of multi-millionaires and billionaires.
others would like you to believe the estate tax is levied on the
grandmother left you, or the $400,000 house your parents want to pass
Again, not the case.
it twisted: The estate tax only impacts the extremely wealthy, and
it benefits only them.
often says he’d like to see the corporate tax rate
drop to 15
percent, down from its current statutory rate of 35 percent. Cutting
by more than half is going to usher in a jobs boom like we’ve never
before, he rants.
off, the plan overall would cost a whopping $1.5 trillion
over 10 years. That alone is enough to pay more
than 18 million
elementary school teachers to improve our education system over the
of time. (Maybe then we’d know the basic arithmetic that our president
could lead to a dramatic drop in
A recent report from
the Institute for
Policy Studies looked at profitable companies who, thanks to loopholes,
effective tax rate of 20 percent or less. Those companies, on
their workforce even while the rest of the private
sector saw a 6
percent jobs increase.
taxes doesn’t create jobs, the report concluded. It does, however, contribute
to higher and higher CEO pay. Just what we need!
tax plan is a giveaway to the ultra-wealthy, and selling it as anything
than that is a misrepresentation of the facts. Don’t take my word for
it — look
at the numbers!
Hoxie directs the
Project on Taxation and Opportunity at the Institute for Policy
report first appeared at Otherwords.org and is reprinted here with