Donald Trump's tax plan would cut federal revenue by $9.5 trillion over a decade and boost the after-tax incomes of the wealthiest households by an average of more than $1.3 million a year, according to an analysis released Tuesday.
Trump's plan, which would cut tax rates and push millions of households off the income tax rolls, would reduce federal revenue by 22%, requiring either significant new borrowing or unprecedented spending cuts.
"The revenue losses from this plan are really enormous," said Leonard Burman, director of the nonpartisan Urban-Brookings Tax Policy Center, which released the study. A bipartisan panel reviewed the report before its release.
Trump's tax plan would compress today's seven individual income tax brackets into three and set a top rate of 25%, down from 39.6%. He would exempt each person's first $25,000, or each married couple's first $50,000, from income taxation. The plan would also cut the tax rates on business income to 15% and curb some deductions.
In a year when Republican presidential candidates have been competing with each other to offer large tax cuts, Trump's is the largest. It is 41% bigger, for instance, than Jeb Bush's plan, according to the center. |
