FACT CHECK: Tax Framework Edition
Treasury Secretary Mnuchin made a number of stunning comments today, including his claim that “it’s very hard not to give tax cuts to the wealthy.” Despite President Trump’s claim that the GOP tax framework won’t benefit the wealthy, his very own Treasury Secretary admitted that the wealthy do, in fact, benefit from their plan. Not only that, but 80% of the total tax cuts outlined would go to the top 1% of Americans, who earn at least $900,000.
The Treasury Secretary also claimed:
“The top 20 percent of the people pay 95 percent of the taxes. The top 10 percent of the people pay 81 percent of the taxes…”
Here are the facts:
The Treasury Secretary also claimed:
“The top 20 percent of the people pay 95 percent of the taxes. The top 10 percent of the people pay 81 percent of the taxes…”
Here are the facts:
- The non-partisan Congressional Budget Office says the top 20% paid 69% of federal taxes in their most recent report on tax burden, not 95%.
- The non-partisan Tax Policy Center also says the top 20% will pay 67.2% of federal taxes next year, not 95%, and that the top 10% will pay 52.9%, not 81%.
- This report from the American Enterprise Institute, which excludes payroll taxes and other federal taxes paid by lower income workers, says: “The top 10 percent of earners already pay 71 percent of federal income taxes.” So, again: not 81%.
- The GOP tax framework would add $2.4 trillion to the deficit over 10 years, and an additional $3.2 trillion over the decade after that.
- While 80% of the total tax cuts go to the wealthiest Americans, one in three middle class families making between $50,000 and $150,000 would see their taxes go up.
- Nearly half – 44.5% – of all taxpayers with children will see a tax increase.