Key Resources for Digging into the Trump and GOP Tax Reform Agenda

President Donald Trump’s tax sketch released in late April is the starting point for federal tax reform discussions. For now, the sketch includes too few details to properly analyze its revenue and distributional impacts, but based on limited information, corporations and the wealthy stand to benefit most. Below are resources ITEP has produced on tax reform. If and when the Trump Administration or Congress release more details about a proposed tax reform plan, ITEP staff will continue to provide analyses and commentary, especially about how any tax proposal would affect working people and the federal government’s ability to fund basic services and programs.

Commentary on President Trump and House GOP’s Tax Plans

Both President Trump and Congress have floated tax plans that would redistribute wealth to corporations and the already rich. Multinational corporations are immensely profitable and currently pay barely more than half the 35 percent statutory corporate tax rate (the average effective rate for profitable corporations is 21.4 percent), yet policymakers are proposing to drop  the corporate tax rate to 20 or even 15 percent with no clear plan for closing the copious loopholes that allow corporations to avoid federal taxes in the first place. Further, this drive to cut taxes for corporations and the rich is contrary to the public will.

• President Trump’s Corporate Tax Outline: At Least He Didn’t Use a Napkin – April 27, 2017
• Trump Tax Plan Revives Economic Voodoo – April 26, 2017
• Does a 15 Percent Corporate Tax Rate Sound Low? For Dozens of Major Corporations, Maybe Not – April 25, 2017
• State of Play: The Coming Debate Over the Ryan and Trump Tax Plans – January 17, 2017
• Congress Shouldn’t Defy Public Opinion and Good Policy by Cutting Taxes for Corporations and the Wealthy – January 17, 2017
• Tax Cuts for the Rich Are the Main Feature, Not a Bug, of the Trump Tax Plan – December 1, 2016

 

Full Revenue and Distributional Analyses of Trump Campaign and House GOP Tax Plans

The so-called “Better Way Plan,” released by Speaker Paul Ryan and the President’s campaign tax plan, are currently the only substantive tax proposals on the table, and it’s reasonable to surmise these proposals will help form the basis of tax legislation moving forward. For each of these plans, ITEP dived into their details and used its microsimulation model to estimate their total revenue and distributional impact. The one common thread between the old plans? Profitable corporations and the wealthiest 1 percent of taxpayers are the biggest winners.

• The Distributional and Revenue Impact of Donald Trump’s Revised Tax Plan – September 26, 2016
• Donald Trump’s Tax Plan Would Cost $12 Trillion – March 17, 2016
• Ryan Tax Plan Reserves Most Tax Cuts for Top 1 percent, Costs $4 Trillion Over 10 Years – June 29, 2016
• Fact Sheet: Comparison of House GOP Tax Plan, Trump’s Initial Tax Proposal and Trump’s Revised Tax Proposal – November 15, 2016

 

Resources on Key Features of the Trump and House GOP Tax Change Priorities

The Trump Administration and House GOP have each put out basic goals for tax legislation, including a corporate rate cut, moving to a territorial tax system, a border adjustment tax, a repatriation holiday, and estate tax repeal among other things. These and other pieces of the plan warrant component-by-component evaluation. ITEP research on some of the most prominent pieces of their plans is below.

Corporate Rate Cut

• Fifteen (of Many) Reasons We Need Corporate Tax Reform – April 13, 2017
• U.S. Collects Smaller Share of Corporate Taxes Than Developed Country Average – April 10, 2017
• The 35 Percent Corporate Tax Myth – March 9, 2017

Move to Territorial Tax System

• How to Shut Down Offshore Corporate Tax Avoidance, Full Stop – April 7, 2017
• Offshore Shell Games 2016 – October 4, 2016
• The Case for Closing the Loophole that Allows Corporations to Defer Taxes on Offshore Income – March 19, 2015

Border Adjustment Tax

• Regressive and Loophole-Ridden: Issues with the House GOP Border Adjustment Tax Proposal – February 22, 2017

Repatriation Tax Break

• The $767 Billion Money Pot Driving Tax Reform – March 28, 2017
• Fortune 500 Companies Hold a Record $2.6 Trillion Offshore – March 28, 2017
• Multinational Corporations Would Receive Half a Trillion in Tax Breaks from Trump’s Repatriation Tax Proposal – January 18, 2017
• Comprehensive Guide to “Repatriation” Proposals – November 28, 2016

Tax Breaks for Child and Dependent Care

• Trump Child Care Tax Break: Good PR, But Bad Policy That Will Do Nothing for Low-Income Families – August 8, 2016

Estate Tax Repeal

• The Federal Estate Tax: A Critical and Highly Progressive Revenue Source – December 7, 2016
• Fact Sheet: Preserving the Estate Tax – December 7, 2016

Pass Through Loophole

• Why We Must Close the Pass-Through Loophole – August 24, 2016

Carried Interest Tax Break Repeal

• Bush and Trump’s “Populist” Tax Rhetoric Is All Talk – September 10, 2015
• How Donald Trump’s Carried Interest Tax Hike Masks a Massive Tax Cut for Wealthy Money Managers – September 29, 2015

Net Investment Income Tax Repeal

• Affordable Care Act Repeal Includes a $31 Billion Tax Cut for a Handful of the Wealthiest Taxpayers: 50-State Breakdown – March 17, 2017

Economic Growth Paying for Tax Cuts

• Lawmakers Should Not Use Disproven Trickle-Down Myth to Ramrod Tax Cuts for the Rich – February 8, 2017
• Tax Foundation Model Seeks to Revive Economic Voodoo – February 11, 2016

 

Progressive Tax Reform Options

If the Trump Administration and Congress plan to make the first fundamental overhaul to the nation’s tax system in a generation, it is critical to take a step back and discuss how tax reform can improve the lot of all Americans and what the majority of taxpayers think lawmakers should focus on. Public opinion polls overwhelmingly show that a majority of the public do not want another round of tax cuts that primarily benefit the wealthy and corporations. True, sustainable tax reform and related proposals should increase revenue and the overall fairness of our tax system.

• What Real Tax Reform Should Look Like – April 27, 2017

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