The voices of Tax Policy Center's researchers and staff
If you'd like to take a break from the made-for-TV thrills of the Republican convention, TPC has prepared a series of bite-sized explanations of Donald Trump's tax plan. We'll be running them daily while the GOP is gathering in Cleveland. Next week, when Democrats are having their get-together in Philadelphia, TPC will do the same for Hillary Clinton.
Donald Trump has proposed a series of tax cuts that would reduce federal revenue by $9.5 trillion over the next decade and add $11.2 trillion to the debt when interest costs are included. Trump's proposed revenue reduction would be the largest in history.
Trump's tax cut is bigger than those proposed by former Republican rivals Ted Cruz ($8.6 trillion), Marco Rubio ($6.8 trillion), and Jeb Bush ($6.8 billion). In fact, he would cut revenues by 4.0 percent of gross domestic product (GDP), nearly twice the 2.1 percent of GDP revenue loss from Ronald Reagan's tax cuts (net of his 1982 and 1984 tax hikes in response to debt concerns). Trump's cuts would also dwarf John Kennedy's (1.6 percent of GDP) and George W. Bush's (1.4 percent of GDP).
Individual income tax cuts (mostly slashing the top tax rate and increasing the standard deduction) would account for nearly three-fourths of Trump's revenue loss. His corporate tax changes would reduce revenue nearly $2 trillion over the coming decade and eliminating the estate tax would cost the Treasury another $200 billion. Trump has proposed limiting the value of some itemized deductions and some business preferences, but this new revenue would not be nearly enough to offset the cost of his cuts.
Posts and comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.
Republican presidential candidate Donald Trump waves to the crowd as he is photographed arriving to speak at a campaign rally, Saturday, June 11, 2016 at a private hanger at Greater Pittsburgh International Airport in Moon, Pa. (AP Photo/Keith Srakocic)