The Latest: Study says wealthy would get most from tax plan
WASHINGTON (AP) — The Latest on President Donald Trump’s tax overhaul plan (all times local):
President Donald Trump insists his new plan to overhaul the tax system will benefit middle-class Americans — not wealthy people like him.
Not so, says a study out Friday. It finds that about 80 percent of the tax benefit would go to the top 1 percent — with income above $730,000 annually — by 2027.
The new analysis by the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution, crunched the numbers in the Republican proposal and found the top 1 percent would see their after-tax income jump an average 8.7 percent.
At the same time, it says, most middle-class Americans would see only modest reductions in their tax bills as the new rules played out. As many as one in four people could end up paying higher taxes.
President Donald Trump says he’s working hard to help companies thrive, compete and grow.
Trump tells the National Association of Manufacturers that the key is a “giant, beautiful, massive, the biggest ever in our country, tax cut.”
The president and congressional Republicans this week released the outlines of a nearly $6 trillion tax cut plan. The plan would deeply reduce taxes for corporations, and simplify tax brackets and nearly double the standard deduction used by most tax filers. But many details remain to be fleshed out.
Trump says he’s working to level the playing field for American workers to they can better compete with workers around the world.
Senate Republicans have unveiled a budget plan that’s the first step to overhaul the nation’s tax system. An overhaul is the top legislative priority for President Donald Trump and the GOP.
House and Senate passage of the budget blueprint would allow Republicans to pass follow-on tax legislation later this year.
The ambitious tax plan would lower rates for businesses and tax plans, and Trump is promising Americans it will be the biggest tax cut ever.
The Senate Budget Committee release on Friday comes in advance of a committee vote next week. In the House, a companion measure is headed for a floor vote next week as well.
The new budget plan permits the upcoming tax measure to add $1.5 trillion over the coming decade to the $20 trillion national debt.
President Donald Trump will promote his plan for a sweeping rewrite of the tax code to an audience eager for the proposed change.
Trump is set to address the National Association of Manufacturers on Friday in Washington. A senior administration official says Trump will promote the tax plan as one that will help make American businesses more competitive. The official insists on anonymity to discuss details of the speech ahead of time.
Trump and congressional Republicans this week released the outlines of a nearly $6 trillion tax cut plan. It would deeply reduce taxes for corporations, simplify tax brackets and nearly double the standard deduction used by most tax filers. Many details remain to be fleshed out.
Trump wants to sign the plan into law by year’s end.
This story was corrected to show a study found that 80 percent of the benefit from President Donald Trump’s tax plan would go to the top 1 percent by 2027, not 10 percent.