Treasury Secretary Steve Mnuchin is promising the “biggest tax cut” in U.S. history. A drop in the corporate rate from 35 to 15 percent would indeed be transformative. But for wealthy individuals, who foot the bill for America’s debt-fueled spending binge, Trump’s plan offers little relief.
The latest IRS data reveals that the top 1 percent of earners pay over 39 percent of total personal income tax revenues, while the top 5 percent pay 60 percent. Trump’s proposed reduction of the top personal income tax rate from 39.6 percent to 35 percent—the same rate that prevailed as recently as 2012 when Barack Obama and Nancy Pelosi were in charge—would not fundamentally change this equation.
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