November 3, 2017

Newsweek: Tax Reform Plan Is More Radical Than You Think

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Critics note that there are plenty of other ways wealthier earners would do well.

“Keeping the top tax rate at 39.6 percent for millionaires is a cosmetic change meant to make this tax plan more palatable. Unless tax writers take out other provisions that almost exclusively benefit the highest-income households, millionaires will still benefit most,” said Alan Essig, executive director of the Institute on Taxation and Economic Policy.

“The framework calls for eliminating the estate tax, a tax that only the richest 0.2 percent of taxpayers pay,” he continued. “It would lower the corporate tax, which primarily benefits wealthy investors. And it would lower the tax rate for pass-through business income, creating a gaping tax loophole that will incentivize the wealthy to claim ordinary income as business income to pay a lower tax rate.” Read more