The Enrichment Effect of Trump’s Tax Plan

First of all, the tax plan that Trump has taken credit for is essentially last year’s Republican tax plan.  It was agreed upon before release by Secretary of the Treasury Steve Mnuchin and Director of the National Economic Council and chief economic advisor to Trump, Gary Cohn, consulting with Mitch McConnell and Paul Ryan.

As for the question of who the Tax Plan will favor, a modification of the analysis of last year’s tax plan shows “the top 1% of households (those with incomes above $700,000) would get roughly 50 percent of the framework’s $150,000 a year on average.”  Also, “The top 0.1% of households (those with incomes above $3.8 million) would get roughly 30 percent of the framework’s net tax cuts, or about $800,000 a year, on average.”

While Trump states that the tax cut will hurt him, he obfuscates the fact that his heirs will not have to pay an inheritance tax on his billions.  Trump has also paid tens of millions because of the Alternate Minimum Tax (to prevent the rich from getting off scot-free), which the tax plan will drop.  Without any complete Trump tax forms to analyze, the public has no reason to believe any of the claims that Trump makes about how the taxes will affect him.  Maybe this is the real reason Trump has not revealed his taxes.  People will want to see them now more than ever.

 

 

About Dennis SILVERMAN

I am a retired Professor of Physics and Astronomy at U C Irvine. For a decade I have been active in learning about energy and the environment, and in lecturing and attending classes at the Osher Lifelong Learning Institute (OLLI) at UC Irvine.
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