TAX PLAN IS SuPER — FOR SuPER RICH
ALBANY – While President Trump trumpets his tax reform plan as a boon for the middle class, it’s really the rich who would benefit the most at the expense of lower-income Americans, according to a fiscal analysis released Friday. According to the nonpartisan Tax Policy Center of the Urban Institute and Brookings Institution, taxpayers in the top 1%, with annual incomes above $730,000, would receive about 50% of the total tax benefit. Their aftertax income in 2018 would actually grow by an average of 8.5%, the report found, while taxpayers in the bottom 95% would see a modest 1.2% tax cut. And about 12% of taxpayers would actually face an average tax increase of roughly $1,800 in 2018, the Tax Policy Center found.
“More than a third of taxpayers making between about $150,000 and $300,000 would pay more, mainly because most itemized deductions would be repealed,” the report says.
The average tax cut as a share of after-tax income would fall for all income groups between 2018 and 2027.
In 2027, those making between $150,000 and $300,000 would see on average a slight tax increase, the Tax Policy Center found.
By 2027, the lower fifth of the income bracket would save about $50 a year on taxes – while the top .1% would be saving over $1 million a year.
In an op-ed in Friday’s Daily News, Pulitzer Prize-winning investigative reporter David Cay Johnston noted the tax plan could be even more profitable for the President’s family. They’d save an estimated $4 billion in estate taxes when their dad passes away.
And despite his saying he wouldn’t personally benefit from the tax cut, a 2005 copy of Trump’s tax return Johnston obtained shows he would have saved $31 million that year under his plan.
House Ways and Means Chairman Kevin Brady (R-Tex.) dismissed the Tax Policy report Friday as “misleading, unfounded and biased.”