Trump's Tax Plan Will Benefit All Income Groups, But the Most Benefits will Accrue to the Top Half of Income Earners
Presidential candidate Donald Trump has proposed a number of tax reforms in order to reduce tax burdens, simplify the tax code and boost economic growth.
Table I shows the amount of tax paid per person in each income decile. The effect of the Trump plan would be to lower taxes for every group. Averaged over the ten deciles, the tax burden would fall by 20.2 percent, with lower proportionate reductions in the lower-to-middle income deciles and higher than average proportionate cuts at the two ends of the income distribution. The reductions would be modest for the lowest quintiles in terms of dollar amounts, but those in the top half of the income distribution would receive an average tax break of $1,000 per person.