Professor Fred Brown contributed an op-ed to today’s Baltimore Sun, “Trump’s tax plan is ‘with you’ if you’re rich.”
Brown, who directs the law school’s Graduate Tax Program, writes that an examination of Donald Trump’s tax plan suggests the Republican presidential nominee would give the largest benefits, in dollar and percentage terms, to the nation’s richest households.
Citing research by the independent Tax Policy Center, Brown says the top 0.1 percent of earners would receive an average tax cut of more than $1.3 million, or 18.9 percent of after-tax income, in 2017 under Trump’s plan; the average tax cut for middle-income taxpayers would be $2,700, or 4.9 percent of after-tax income.
The Tax Policy Center and the more conservative Tax Foundation, also a nonpartisan tax research group, have determined as well that Trump’s tax plan would dramatically reduce federal revenues, depriving the U.S. government of roughly $10 trillion over the next 10 years.
Without unprecedented spending cuts, Brown says, such a reduction in federal revenue would substantially increase the national debt – a burden that would have to be borne by all current and future taxpayers.
Trump’s tax plan also includes the repeal of the federal estate and gift taxes, which affect only the very wealthiest taxpayers. Brown notes that Third Way, a centrist think tank, has estimated that Trump’s tax plan would save the Trump family alone more than $7 billion in federal estate taxes.
Hillary Clinton, the Democratic presidential nominee, has released a tax plan that would raise taxes, but, according to the Tax Policy Center, nearly all of the increases would be assumed by the nation’s top 1 percent of taxpayers, Brown writes.