Donald Trump’s $10 trillion tax cut proposal could raise $1.5 trillion more in taxes, according to a new analysis by the Tax Policy Center.
Trump’s plan would eliminate a number of tax breaks and deductions, including a $2,500 tax credit for people who are married and filing jointly.
That credit would be phased out over a decade, but the center notes that the credit would remain in effect even after Trump’s plan is fully implemented.
The Tax Policy Council estimated that $2.5 billion in tax savings could be realized through the phased-out credit alone.
The savings would not go entirely to people earning less than $200,000 a year, the center found, but would go to people who earn between $200 to $1 million.
The tax cuts could also benefit businesses and individuals who pay more than the average federal tax rate.
For example, the Tax Foundation, which is nonpartisan, estimates that those making between $100,000 and $200.9 million a year could benefit from the tax cuts.
For more:Donald Trump’s Tax Plan Could Create Millions of New Jobs, According to Analysis from Tax Policy Institute”The tax plan also would reduce the corporate tax rate to 25 percent, reduce the estate tax, and cut taxes for individuals,” the Center found.
“These provisions would increase the economic well-being of all Americans.”
The center noted that a few other tax breaks could be repealed, including the child tax credit and the deduction for charitable contributions.
The plan also could result in a new tax on investment income, which could lead to lower economic growth.