The richest 1 percent — households making at least $732,800 — would get an average tax cut of $129,030, the analysis finds. For the typical one-percenter (who earns much more than $732,800), that means 8.5 percent more income after taxes. The richest 0.1 percent, earning at least $3.4 million a year, would get $722,510 back on average, for a 10.2 percent average boost in after-tax income.
By contrast, the middle class (households earning $48,600 to $86,100 a year) would get $660 back, a 1.2 percent income boost. The poorest fifth of Americans, earning $25,000 or less, would only get $60, a 0.5 percent increase.
.. But the next guest on the “This Week” was Vermont Sen. Bernie Sanders, who delivered a stinging rebuttal:
Everything he [Mnuchin] said is dead wrong … They are repealing the Estate Tax. The Estate tax only applies to the top two tenths of one percent — millionaires and billionaires, like the Walton family of Wal Mart, like the Koch Brothers, like the Trump family. $269 billion in tax breaks for the top two tenths of one percent over the next ten years. And this is not a tax break for the rich? Well, I don’t know what a tax break for the rich is.
Corporate Tax Cuts Would Benefit Ordinary Americans
An E.U. Study in 2007 found, for example, that “a ten percentage point increase in the corporate tax rate of high-income countries reduces mean annual gross wages by seven percent.”
.. “workers in a fully unionized firm capture roughly 54 percent of the benefits of low tax rates,”
..A lower corporate rate leaves more after-tax profits for firms and workers to bargain over, which can raise wages directly. And lower rates increase a company’s after-tax return on investment, encouraging investment relative to consumption. This helps raise capital per worker and hence boosts productivity and wages over time.
.. Britain and Canada, in particular, have shown that it is possible to substantially cut rates without meaningfully reducing corporate revenues as a proportion of GDP.
Trump Proposes the Most Sweeping Tax Overhaul in Decades
Republicans say economic growth will compensate for lost revenue. Senator Patrick J. Toomey, a Pennsylvania Republican who sits on the Finance Committee, said he was confident that a growing economy would pay for the tax cuts.
“This tax plan will be deficit reducing,” Mr. Toomey said.
The GOP Tax Plan: Tough Choices With Limited Room to Maneuver
Republicans will likely struggle to squeeze all their priorities into a deal that allows for $1.5 trillion in tax cuts
The plan will call for driving down the corporate tax rate into the low 20% range, from 35%, according to a person familiar with the discussions. It will also likely include a doubling of the standard deduction that would benefit many individual filers, lower individual rates, fewer tax brackets and sharply reduced rates for “pass-through” business owners who pay tax on business income through their individual returns.
.. Republicans also have said they want to eliminate the estate tax, repeal the alternative minimum tax, expand write-offs for business investments and reduce taxes on U.S. corporate foreign profits.
.. the Republicans’ wish list will likely add up to more than $5 trillion worth of tax cuts over a decade