A Project of The Annenberg Public Policy Center

Trump’s Tax Plan and ‘the Rich’

In promoting his plan to overhaul of the nation’s tax system, President Donald Trump claimed “the rich will not be gaining at all with this plan.” But the tax proposal his administration outlined in April would heavily benefit high-income taxpayers, and Trump hasn’t revealed any changes to it.

Trump’s Tax Cut Claims

Donald Trump misleadingly touts tax cuts of 30 percent for “working people” or 35 percent for “a middle-class family with two children,” adding that Hillary Clinton “wants to raise your taxes up to the sky.” That distorts both Trump’s and Clinton’s plans.

Hedge Fund Managers’ Tax Rates

Sen. Bernie Sanders says firefighters, police officers, nurses and truck drivers all pay higher effective tax rates than hedge fund managers. That’s accurate for some in those occupations, but it’s not the case across the board.

NRSC Distorts Braley Tax Record

In Iowa, a Republican ad claims that Democratic Senate nominee Bruce Braley “voted to raise taxes on every single Iowa taxpayer.” That badly distorts Braley’s clearly stated position.

McConnell’s Bloated Tax Boast

A new ad from Senate Republican Leader Mitch McConnell grossly oversells the percentage of Kentuckians that McConnell “saved” from income tax hikes last year.

Dependency and Romney’s 47 Percenters

Mitt Romney was wrong when he said the 47 percent of Americans who pay no federal income taxes are “dependent on the government.” Most of them are working people who simply do not earn very much money.
Romney also assumed that all of those in the 47 percent who pay no federal income tax vote Democratic. But polling data suggest that’s just not true. President Obama is faring better than Romney among the lowest earners —

Breakdown of Government Revenue

Q: What’s the percentage breakdown of the government’s tax revenue stream?
A: Nearly half of federal revenue came from income taxes on individuals last year, and another one-third came from social insurance taxes, mainly for Social Security.