Saturday, April 30, 2016

Millionaires Would Gain Trillions Under Trump and Cruz Tax Plans

April 28, 2016
by Isaac Shapiro

At a time of exceptionally wide levels of income inequality, the tax-cut proposals from Republican presidential candidates Donald Trump and Ted Cruz would produce extremely large and unprecedented tax-cut windfalls for people with incomes exceeding $1 million a year, almost certainly at the expense of low- and middle-income households once budget cuts to pay for the tax cuts are taken into account. Both tax plans would ultimately increase the already substantial incomes of people who make over $1 million a year by about 20 percent, with the revenues lost due to the tax cuts for millionaires exceeding $3 trillion over the coming decade.


TPC also examined the tax cuts that would be given to the richest 0.1 percent of the population, those with annual incomes exceeding $5.2 million (in today’s dollars). The data show that in 2025:

These households would receive tax cuts averaging $1.4 million under Trump and $1.8 million under Cruz. Under both plans, this segment of the population would receive significantly larger percentage increases in after-tax income (18 percent and 23 percent, respectively) than any other group.


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