Fact check: Claims about Trump's tax plan don't hold up

Fact check: Claims about Trump's tax plan don't hold up

"If it actually leads to a tax cut, it will be tilted toward lower income, low-tax states".

Trump's new plan is silent on this issue as well.

That sounds great, but very few families making $24,000 a year pay federal income tax, said Roberton Williams, a fellow at the nonpartisan Tax Policy Center.

Given that the plan is similar to what Trump proposed on the campaign trail, the Committee for a Responsible Federal Budget did a rough cost estimate of his latest ideas and concluded they could cost $5.5 trillion in lost revenue during the first decade. That assumes all elements of the plan are approved by Congress, which is doubtful. "It's also about creating economic growth and having people invest", said Mnuchin. Tax experts are skeptical, and they're backed up by history. These are key Republican goals that would require lawmakers to eliminate or reduce precious tax breaks enjoyed by millions of Americans. If this happens, taxpayers who don't have complex finances could end up saving money on their taxes.

Looking at Trump's 2005 tax return information that emerged last month, the Times concluded that Trump could save $31 million from repealing the Alternative Minimum Tax, which accounted for 80 percent of his total 2005 income tax payment. The second-largest cut, following WWII, cost the country about 2.7% of GDP in the year after it was enacted. But Cole forecasts growth would increase by only half that amount, resulting in ballooning deficits.

Treasury Secretary Steve Mnuchin said of the tax: "We don't think it works in its current form".

By the CRFB's estimates, President Trump's tax plan - which is still very light on details and hard to forecast with any accuracy - would cost about $5.5 trillion over a decade. The skeletal plan, which the White House unveiled as a single-page document, would lower the corporate tax rate to 15 percent-though corporations rarely pay the current rate of 35 percent.

"Can you guarantee no one in the middle class is going to pay more?"

This is a reason to believe any major business tax cut under President Trump would do a lot to grow the deficit, and not very much to grow the economy. Because of that, he instead paid $38 million.

Trump's tax proposal would also lower the capital gains tax rate and would decrease the number of income tax brackets from seven to just three, while lowering the tax rate for the wealthiest individuals by almost 4 percentage points.

What are the objective for business tax reform?

Ryan and fellow House Republicans have been working for years on a plan that tries to lower tax rates for businesses and individuals without adding to the debt.

President Trump, obsessed with the 100-day mark he has spent all week disparaging, was determined to introduce the biggest tax cut ever even if it was lacking in details.

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