THE WASHINGTON POST...We award Four Pinocchios.
No, the House GOP tax plan isn’t ‘so bad’ for rich people
President Trump made a personal appeal from an ocean away to ask moderate Senate Democrats to support the Republican tax plan. Calling National Economic Council Director Gary Cohn, who was in a meeting with the Democrats, Trump reportedly said, “The deal is so bad for rich people, I had to throw in the estate tax just to give them something.”
Both the nonpartisan Joint Committee on Taxation (JCT) and the Tax Policy Center (TPC) have published analyses of the tax cut. TPC shows that by 2027 tax payers with incomes of $5 million and above would experience the biggest percentage change in after-tax income and in the average tax rate. The JCT analysis shows how taxpayers with incomes over $1 million would see their tax cuts grow over the course of the tax bill, from 2019 to 2027.
Here are a few specifics: the House bill repeals the Alternative Minimum Tax (AMT), changes the tax rate for pass-through entities and as Trump said, repeals the estate tax. The specifics of each of these changes benefit the rich and uber-rich. The estate-tax provision is even more generous than Trump’s own campaign plan, as the Fact Checker reported.
Contrary to the president’s claim, the tax plan is not “so bad” for the wealthy. In fact, no matter how you slice it, the super-wealthy do rather well under the House GOP proposal. But as we have said, that’s largely because they already pay a large chunk of income taxes already. We award Four Pinocchios.