According to a study.
An analysis of Donald Trump’s tax plan by a research institute reveals two interesting points: the U.S. government would get a lot poorer, and the wealthy would get a lot richer.
In the Tax Policy Center’s analysis of the Republican candidate’s proposal, the institute said that Trump’s plan would reduce federal revenues by $9.5 trillion over its first decade, and an additional $15.0 trillion over the next 10 years. Including interest costs, the Center said, the proposal would add $11.2 trillion to the national debt by 2026.
To put that into perspective, Trump’s tax plan would cause the debt to GDP ratio to hit 180% by 2036, the Center found.
Most of the revenue loss from Trump’s plan – which you can read here – stems from individual income tax cuts, the Center said in its study released Tuesday. While the plan cuts taxes for all income levels, the biggest cuts involve the highest-income level, both in dollar terms and as a percentage of income. By 2017, the highest-income 1% of taxpayers would receive a tax cut of 17.5% of after-tax income, and the top 0.1% — those with incomes of over $3.7 million in current dollars — would experience an average tax cut of more than $1.3 million, nearly 19% of after-tax income.
In contrast, the lowest-income households would receive an average tax cut of $128, or 1% of after-tax income, in Trump’s plan. Overall, on average, the proposal would would cut income taxes by around $5,100 per person, or about 7% of after-tax income.