Following is a statement by Alan Essig, executive director of the Institute on Taxation and Economic Policy, regarding the tax plan released today by the Trump Administration. The administration has said that this plan will be the “largest tax cut in history.”
“The Trump tax plan is not tax reform but a massive tax cut that primarily benefits the wealthy and corporations. This plan offers relatively little benefit to average taxpayers. With corporations making record profits and with income continuing to concentrate among the wealthy, it defies logic that transferring more money to the wealthy and corporations will significantly impact economic growth.
“Based on the plan’s limited details, Trump’s tax giveaway could cost trillions of dollars. And despite the administration’s overtures, the plan would not pay for itself. Trillions of dollars in lost revenues would increase the deficit and most likely lead to cuts in vital public services. Tax reform intended to economically benefit working people would raise enough revenue to adequately invest in vital programs such as education, job training, research and development, and infrastructure.
“For the better part of the 20th century, the nation’s economic pie grew as did incomes for all Americans. But for the past 40 years, wages for ordinary Americans have stagnated while income growth and wealth has concentrated at the top. Our nation’s tax and other public policies play a big part in this damaging trend. Our policymakers owe working people more than tax cuts with unrealistic promises of economic growth.”