Despite claims otherwise, the Trump tax proposal is again being criticized for disproportionately helping the wealthy while the middle class will receive less-than-promised, according to a new analysis released on Monday.
People earning more than $730,000 a year would get an average cut of more than $37,000, according to the Tax Policy Center. This would amount to 22% of the total tax cut that the Republican bill proposes.
The analysis goes on further to outline that middle-income earners would get an average cut of $700.00, compared to a hefty $178,000 estimated cut for the top 0.1%.
Taxpayers in the top one percent stand to get a hefty tax cut from the bill unveiled last week by congressional Republicans, according to a new analysis released Monday.
— Tax Policy Center (@TaxPolicyCenter) November 6, 2017
The Trump tax proposal has come under attack from a number of directions as the plan was fully revealed last week after only a framework was shown to the public.
The latest Tax Policy Center analysis sheds light on what many are claiming is ultimately a tax break for the wealthy coming at the expense of the middle class, which would increase the already widening inequality in the U.S.
Others have gone after the bill’s proposals to cut tax deductions for states with high-income tax rates. This would primarily affect middle-class Americans living in Democrat-run states.
Others still have taken issue with the estate tax elimination, a move that would only cut taxes for individuals with estates valued at $5.5 million or above, or married couples with estates of $11.0 million or more. The estate tax applied a 40% tax to those inheritances, but under the new bill, the tax would eventually be eliminated within six years.
All the while, the Trump tax proposal would result in an over $1.0 trillion loss of revenue, with the current number hovering around $1.4 trillion, although that does not take into account how much money would be generated by a potentially spurred-on economy.
All the same, Americans are faced with a Trump tax proposal that looks more and more like it will increase inequality while doing little to help many middle-class taxpayers.
“The top 1% would get this much under the Republicans’ tax-cut bill,” MarketWatch, November 6, 2017.