Trump Wants A New $100 Billion Tax Cut For The Wealthiest Americans, Not Workers
July 31, 2018
First, Trump and Republicans passed the Trump tax law, which gives most of the benefits to millionaires and billionaires. Now, Trump wants yet another tax cut that would also give most of the benefits to the millionaires and billionaires. Meanwhile, real wages for workers have declined.
Round 1: Trump and Republicans passed a $1.5 trillion tax cut that gives more than 80% of the benefits to the top 1% by the end of the decade.
The Hill: “Congress's official scorekeeper, the Joint Committee on Taxation, estimated that the bill would cost about $1.46 trillion over 10 years before factoring in economic growth.”
Vox: “By 2027, more than half of all Americans — 53 percent — would pay more in taxes under the tax bill agreed to by House and Senate Republicans, a new analysis by the Tax Policy Center finds. That year, 82.8 percent of the bill’s benefit would go to the top 1 percent, up from 62.1 under the Senate bill.”
Round 2: Trump wants to bypass Congress to grant a new $100 billion tax break for investors that would give more than 80 percent of the benefits to the top 1%.
New York Times: “The Trump administration is considering bypassing Congress to grant a $100 billion tax cut mainly to the wealthy, a legally tenuous maneuver that would cut capital gains taxation and fulfill a long-held ambition of many investors and conservatives.”
Penn Wharton: “Because income from capital gains is concentrated among high-income households, the benefits of this change would accrue primarily to the upper end of the income distribution. Table 1 shows that the top one percent of tax units would receive more than 86 percent of the tax cut, and that after tax-incomes would increase most for the top 0.1 percent.”