Trump’s proposed tax bill would reduce the tax burden on high-income earners by $2,9 trillion over a decade, according to a new report from the conservative Heritage Foundation.
The $2 trillion in tax cuts would be distributed between those earning over $250,000 per year and those making between $200,000 and $500,000.
That would make the proposed plan the most generous tax cut in U.S. history, according the report, which was commissioned by the president’s administration.
In 2018, the Tax Policy Center estimated that the tax plan would raise between $2 billion and $3 billion in revenue over the next decade.
The report noted that the plan would have a major impact on how much Americans save for retirement and would help people save for their own retirement.
For example, the plan’s corporate rate would drop from 35 percent to 25 percent, a drop of more than 10 percentage points.
The proposal would also cut the number of tax brackets from seven to four, while raising the standard deduction from $12,000 to $24,000, a tax break that the GOP is looking to expand.
The plan would also lower the standard mortgage deduction from up to $1,000 from $1.5 million to $750, and eliminate the personal exemption.
The tax cuts are not retroactive.
The president’s proposed plan would be phased in over five years, with some provisions phased in after 2020.
The Tax Policy Project estimated that it would raise $2 in annual revenue over 10 years.
The group also noted that while the tax cuts for high-wage earners are substantial, there are also significant provisions that will make the plan less generous to low-wage workers.
“These tax cuts don’t create a permanent, universal middle-class tax cut, but rather an additional tax hike on millions of Americans and an additional layer of deductions on their paychecks that will be even more difficult to collect and administer,” the group wrote.
Trump’s proposal would allow corporations to write off up to 35 percent of their tax bill, which the GOP calls a “border adjustment.”
That would mean that companies would be able to write that off, but they would not be able just to deduct it from their income.
The House passed the House-passed Tax Cuts and Jobs Act earlier this month, and it has since passed the Senate.
Republicans have said they want to pass the bill on its own, which could lead to a partisan filibuster.