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Home>Trump tax plan would cost $2.4 trillion, analysis finds

Trump tax plan would cost $2.4 trillion, analysis finds

Trump tax plan would cost $2.4 trillion, analysis finds

09/30/2017

By Robert Schroeder, MarketWatch

Highest-income Americans would get biggest cuts: study

The tax framework released this week by the White House and top Republicans would cost the federal government $2.4 trillion in its first 10 years, and give the biggest tax cuts to Americans with the highest incomes, a new analysis finds.

The study from the Tax Policy Center (http://www.taxpolicycenter.org/publications/preliminary-analysis-unified-framework/full) found that next year, the bottom 95% of earners would see average after-tax incomes rise between 0.5% and 1.2%. But taxpayers in the top 1% of incomes -- that is, above $730,000 -- would see an increase of 8.5%.

(https://twitter.com/TaxPolicyCenter/status/913831347533250560)

Estimates in the study are preliminary, since the framework unveiled by the so-called Big Six left key details up to Congress.

Opinion:What we know and don't know about Trump's tax plan (http://www.marketwatch.com/story/what-we-know-and-dont-know-about-trumps-tax-plan-2017-09-29).

Yet the cost of the plan, as estimated by the center, may present challenges to Republicans. The Trump administration has said that economic growth will pay for the major tax breaks they envision. But the framework also calls for saving money by eliminating the state and local tax deduction, as well as other deductions.

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