New analysis: Trump tax cut mostly helps the rich. Duh | Arkansas Blog

Friday, September 29, 2017

New analysis: Trump tax cut mostly helps the rich. Duh

Posted By on Fri, Sep 29, 2017 at 2:29 PM

The New York Times reports on a nonpartisan review of the Trump/Republican tax plan, such as is known:
The Republican tax plan promoted by President Trump this week as a middle-class tax cut would overwhelmingly benefit the wealthiest Americans and businesses, according to an analysis released on Friday by the nonpartisan Tax Policy Center.

The report, which is the first detailed assessment of the plan’s financial impact, found that the average tax bill for all income groups would decline by $1,600, or 2.1 percent, in 2018. The biggest decrease would go to those with incomes above $730,000, who would see their after-tax incomes rise by an average of 8.5 percent, or about $129,000.

Those in the middle quintile — with incomes averaging $66,960 — would see their after-tax income rise by 1.2 percent or about $660.
$10.30 a week in benefits might not go far given what the Republicans eventually hope to do to government support for health care.

Corporations would be major beneficiaries and their burden would shift to individual taxpayers. Here's how that would work:

The loss of deductions would hit the upper middle class the most, and more than a third of the taxpayers who earn $150,000 to $300,000 could see their taxes go up next year, the report found. They would be hit particularly hard by the repeal of the state and local tax deduction.
Everybody who itemizes their taxes in Arkansas would be hit by the factor mentioned above because Arkansas has a relatively high state income tax — 6.9 percent in the top tax bracket.

The plans will balloon the deficit, unless you still believe in the never-realized stimulus effect of tax cutting that is a Republican article of voodoo faith.Here's

The Tax Policy Center estimates the plan will cost $2.4 trillion over a decade. Republicans are counting on a surge of economic growth to pay for their tax plan and the Tax Policy Center analysis does not account for those “dynamic” effects. 
Here's a chart that shows the top 1 percent would get about 80 percent of the benefits.

Tags: , ,

Sign up for the Daily Update email

Comments (11)

Showing 1-11 of 11

Add a comment

Subscribe to this thread:
Showing 1-11 of 11

Add a comment

More by Max Brantley

Readers also liked…

  • Women's March planned in Arkansas to mark Trump inauguration

    Speaking of Donald Trump and in answer to a reader's question: There will be a women's march in Arkansas on Jan. 21, the day after inauguration, as well as the national march planned in Washington.
    • Dec 30, 2016
  • Latest Obamacare repeal bill would hit Arkansas treasury hard

    The latest effort to undo Obamacare, the Graham-Cassidy legislation, would shift federal support for health coverage to a block grant system to the states. Bad news for Arkansas.
    • Sep 18, 2017
  • Trump immigration protest at LR: Quick and fierce

    It was not even 24 hours ago that Sophia Said, director of the Interfaith Center; City Director Kathy Webb and others decided to organize a protest today of Donald Trump's executive order that has left people from Muslim countries languishing in airports or unable to come to the US at all — people with visas, green cards,a  post-doc graduate student en route to Harvard, Google employees abroad, families. I got the message today before noon; others didn't find out until it was going on. But however folks found out, they turned out in huge numbers, more than thousand men, women and children, on the grounds of the state Capitol to listen to speakers from all faiths and many countries.
    • Jan 29, 2017

Most Recent Comments



© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation