President Donald Trump’s administration is proposing a tax cut for the wealthiest Americans, who will pay an average of 15.5 percent less in taxes over a decade than they would under current law.
The administration said Thursday that the proposal will generate $1.4 trillion over 10 years and pay for a massive tax cut on corporate and individual income, as well as a $50 billion boost in the government’s coffers for the military and veterans.
The plan, dubbed the Tax Cuts and Jobs Act, was unveiled at a White House ceremony.
Trump’s plan would cut taxes for those earning $250,000 and $1 million a year by $8,000.
Those making between $50,000 to $100,000 a year would pay an effective tax rate of 39.6 percent, according to the Tax Policy Center.
The rate would drop to 25 percent if Trump were to cap the deduction for state and local taxes at $10,000, and it would drop further to 15 percent if he were to increase the cap.
Trump has not specified how much he plans to cut the corporate tax rate, but his advisers said they expect it to be cut from 35 percent to 15.4 percent, and from 15 percent to 25.4.
Trump and his advisers also have proposed eliminating a $1,000-a-year cap on mortgage interest deductions and other exemptions for the wealthy.
The House of Representatives is set to vote on the legislation this week, and Trump’s proposed legislation has been met with criticism from Democrats, including Democratic presidential candidate Bernie Sanders.
In a letter to members of Congress on Thursday, Sen. Sherrod Brown, D-Ohio, said the proposal would “reinforce the idea that the wealthy will pay their fair share of taxes.”
He added that he would introduce legislation that would “give middle-class families relief and that will also include making our economy more competitive by reducing the outrageous cost of healthcare for those who need it most.”