Trump’s tax plan benefits only the wealthy

Trump claimed that his tax plan will be the largest cuts since Ronald Reagan and create jobs, while in his words Clinton’s would create a huge tax hike.

Trump’s tax plan would disproportionately help the wealthiest Americans, saving them millions of dollars and adding trillions to the national debt, according to an analysis by the Tax Foundation, a conservative thinktank. He would reduce the business tax rate to 15%, eliminate the estate tax (aka the “death tax”), which mostly affects wealthy inheritors, and would reduce revenue from taxes by about $5tn. According to the Foundation, the top 1% of earners would see a 10.2% increase to their incomes.

Clinton’s tax plan does not change tax rates for the middle class, but does increase taxes by 4% on people who have an adjusted income of more than $5m, as well as closing corporate loopholes. Only about 0.5% of small businesses in the US reported a profit of more than $1m in 2011, according to the US treasury department. Clinton would increase tax revenue by $1.1tn by taxing the top 1% of earners, increasing the estate tax and eliminating fossil fuel subsidies, and by implementing and a more complex tax code, according to the Tax Policy Center.

Trump has not proven that he pays any federal income tax, and did not deny that he doesn’t pay, saying simply that it would prove he’s “smart”.

More fact-checking on the presidential debate on The Guardian web site.

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