Donald Trump’s tax plan would reduce federal tax revenue by $6.2 trillion and provide benefits to Wall Street despite closing the “carried interest” tax loophole, according to a new report. The report, undertaken by a nonpartisan tax research group called Tax Policy Center, found that nearly 75% of the tax revenue deduction would come from lower business taxes.
The ultra-wealthy, the top 0.1% of earners, would have their taxes reduced by as much as $1 million.
Hillary Clinton’s plan would raise the federal tax revenue by $1.4 trillion over a 10-year period, with higher taxes imposed on the wealthy. A surcharge of 4% would be imposed on people that earn over $5 million.
Trump had proposed a top income rate of 33%, but his plan would allow private equity partnerships and hedge funds to have a special income tax rate of 15%, depending on the size of the company.
The group asserts that while Trump’s plan does remove the carried interest rate, Wall Street will benefit even more thanks to the proposed 15% tax rate, which is a much better deal. Trump’s plan doesn’t define “large investment fund managers,” which he has proposed would receive a 20% dividend tax. The dividend tax would eliminate all additional benefits provided to “large” hedge funds.