Despite Promises To The Contrary, Trump Tax Plan Heaps Biggest Benefits On The Rich
Back to the ol’ drawing board.
It was just 48 hours ago that President Trump released his long-awaited tax plan to an eager public. This was a plan, the President promised, that was focused on cutting taxes for the working man. As he put it, “Our framework includes our explicit commitment that tax reform will protect low-income and middle-income households, not the wealthy and well-connected.”
The rich, he went on to explain, would not benefit one bit under his plan. This mirrored a previous promise made by Treasury Secretary Steven Mnuchin, in what has become known as “Mnuchin Rule.” The President was adamant:
“By eliminating tax breaks and loopholes, we will ensure that the benefits are focused on the middle class, the working men and women, not the highest-income earners. They can call me all they want. It’s not going to help. I’m doing the right thing, and it’s not good for me. Believe me.”
Well, Mr. President, it appears as though you can stop worrying about rich friends calling to complain. They’re going to do juuuust fine under your plan, and so are you, as evidenced by an analysis released today by the Tax Policy Center. They and you will do disproportionately better, in fact, then the lower-class taxpayers you said were the focus of your tax cuts.
Oh, and as for America’s forgotten middle class? For those making between $100,000 and $300,000, well…there is a one-in-three chance they will be paying more in tax then under current law.
How did the GOP’s tax reform proposal so badly miss its mark? Before we dive in, let’s get a quick refresher on what the proposal had to offer.
Continue reading on, Forbes.com
Authored by Tony Nitti, Withum Partner and writer for Forbes.com.
