A White House report that President Donald Trump’s proposed $1.9 trillion tax overhaul would increase the federal corporate tax rate from 35 percent to 39.6 percent was “extremely misleading,” according to an analysis released by a tax expert.
Trump’s plan would boost the top tax rate to 20 percent from 15 percent, according to the analysis by the nonpartisan Tax Policy Center, which was commissioned by the White House.
It also would add an additional 1.3 percentage points to the national minimum wage, increase the estate tax, and increase the rate on capital gains from 10 percent to 15 percent.
“Trump’s proposal would make the U.S. economy more efficient by reducing corporate tax burdens, and would increase income inequality, by reducing the share of income going to the top 1 percent of Americans and the top 0.1 percent of earners,” the analysis said.
“Tax reform will also be good for the economy because it will reduce the burden of the estate taxes, which have been a drag on economic growth over the last decade.”
The analysis found that the tax plan could lead to a 10 percent cut in the annual federal deficit by 2025.
“The president’s proposal does not change the structure of the tax code,” the report said.
It added that it was unclear how the proposal would affect the deficit, the deficit’s share of economic output, or whether it would boost overall economic growth.
“It is possible that the plan could reduce the deficit by the amount the president’s campaign claims.
But, in the absence of any new revenue from tax reform, the administration’s plan appears to be a net fiscal drag on the economy.”
The nonpartisan Tax Foundation, which also reviewed the plan, said the White the proposal was “very costly to the U