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Tax Policy Experts Savage Trump, GOP Tax Plan – Favors Richest Americans, adds $21T to National Debt

Impact of GOP tax plan on Americans

An analysis of the tax plan released by President Donald Trump and Congressional Republicans this week shows the plan would overwhelmingly favor richest Americans, hammer the poor and middle class families, and raise national debt by $20.9 trillion by 2036. It would also lower federal revenues by $6.2 trillion over the first 10 years.



The damning report by the Tax Policy Center should be a wake-up call to everyone, even if you support the Republican Party’s effort to change America’s tax system.

“The largest benefits, in dollar and percentage terms, would go to the highest-income households. Federal revenues would fall by $6.2 trillion over the first decade before accounting for added interest costs. Including interest costs, the federal debt would rise by $7.2 trillion over the first decade and by $20.9 trillion by 2036,” the analysis said.

RELATED: Trump, GOP Tax Plan Gives Away $2 trillion to the Wealthy, Corporations – Raises Taxes for Poor Families.

Tax Policy Center (TPC) analysts said the Trump and GOP plan, if enacted would blow a $2.4 trillion hole in the federal budget.

GOP tax plan winners

Trump priased the tax plan on Friday as a “giant, beautiful, massive, the biggest ever in our country, tax cut.” He said the plan would help American businesses and workers “thrive, compete and grow.”



But TPC said the plan if enacted into law, would devastate middle class Americans Trump said the plan was designed to help – it would increase their tax burden by 28 percent.

“Someone needs to honestly explain to working-class households why they’d want to get anywhere near this thing,” said Jared Bernstein, a former chief economist to Vice President Joe Biden.

Although much of the tax plan has not been fleshed out by tax writing authorities, the 9-page framework released by Congressional Republicans includes the elimination of some popular tax deductions enjoyed by poor and middle class American families.




Based on available details, the Tax Policy Center analysis shows that the top 1 percent of American households – those making $730,000 and up – will get 8.5 percent or about half of all the benefits of the tax plan.

While much of the windfall will be reaped by businesses and corporations – they will get at least $2.6 trillion while individuals and families are expected to receive $470 billion in benefits – the bad news is that middle income families will see a huge tax increase.

“Someone needs to honestly explain to working-class households why they’d want to get anywhere near this thing,” said Jared Bernstein, a former chief economist to Vice President Joe Biden.

According to the analysis, the worst news for middle-class taxpayers is that they would see a tax increase over 10 years. That includes some 10 percent of low-income households and more than a quarter of the middle class.






Individuals earning $150,000 to $300,000 a year would also get hammered by the tax plan. The Tax Policy Center reports that by 2027, 60 percent of them would see their taxes rise by about $4,000 but just 3 percent of the richest Americans would face a tax increase.

SEE ALSO: Republican Voters hate Congressional Republicans too. Who Knew?

Experts say Trump was looking out for himself and his friends when he agreed to push this tax bill. “If we assume that he knows what is in this tax plan and he agrees with it, and that is not a given, then apparently he was looking out for himself and his wealthy friends,” a tax analyst said Friday on condition of anonymity so she could speak freely.

Click here to read the complete analysis of the Trump, GOP tax plan from The Tax Policy Center.

 

 

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