Individuals currently paying the top tax rate of 39.6 percent would see that rate drop to 35 percent; businesses organized as pass-throughs—like the Trump Organization—would pay 25 percent; the inheritance tax, which only affects estates worth more than $5.49 million, would go away; and corporations would have their tax rate slashed from 35 percent to 20 percent.
Of course, even Team Trump and the G.O.P.
But as a study by the Center on Budget and Policy Priorities shows, those savings actually largely go to “those at the top,” like chief executives and shareholders, “with only a small share flowing to low- and moderate-income working families.” In fact, until recently, a 2012 paper by the Office of Tax Analysis that could be found on the Treasury Department’s Web site found that “workers pay 18% of the corporate tax while owners of capital pay 82%,” with the nonpartisan Joint Committee on Taxation estimating that “capital bears 75% of the long-run corporate-tax burden, with labor paying the rest.” In other words, Treasury Secretary Steve Mnuchin’s claim that slashing the corporate tax rate would disproportionately benefit workers is, to use economic jargon, total bullshit.
It’s the rich guys who disproportionately stand to save the most—by a lot.
Asked about the curious case of a paper at odds with the administration’s point of view, a Treasury spokeswoman told the Journal, “The paper was a dated staff analysis from the previous administration.