Trump’s Proposed Tax Overhaul Would Give Billions to Trump and Cabinet While Sparking Global “Tax War”

As the Senate narrowly passes a budget bill that clears the path for a historic tax reform, we’ll look at how President Trump’s proposed tax overhaul would shower billions of dollars in tax cuts upon the wealthiest Americans — including President Trump’s family and members of his administration. An analysis by the Center for American Progress Action Fund shows President Trump’s family and Trump’s Cabinet members would, combined, reap a $3.5 billion windfall from the proposed repeal of the estate tax alone. Trump’s plan would cap the tax rate on “pass-through income” at 25 percent — a move that would also shower millions in savings upon millionaires and billionaires. We speak with economist James Henry of the Tax Justice Network and Pulitzer Prize-winning journalist David Cay Johnston, whose latest piece is titled “Nine Reasons Trump’s Tax Plan Will Hurt You.”

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AMY GOODMAN: We turn to President Trump’s efforts to dramatically rewrite the US tax code, critics slamming the plan, saying it would massively redistribute wealth to the richest 1 percent of Americans — including President Trump and members of his administration. An analysis by the Center for American Progress Action Fund shows President Trump’s family and Trump’s Cabinet members would, combined, reap a $3.5 billion windfall from the proposed repeal of the estate tax alone. The plan also calls for slashing the corporate tax rate from 35 percent down to 20 percent. Earlier this year, Trump proposed cutting the corporate tax rate to as low as 15 percent.

The plan also proposes lowering the tax rate on so-called pass-through income, in which the profits of a business are transferred directly to the business owners. Under the current code, the tax rate on pass-through income varies based on the owner’s income, ranging from as low as 10 percent to as high as 39 percent. Trump’s plan proposes capping the tax rate on pass-through income at 25 percent, a move that would also shower millions in savings upon…

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