On Wednesday, Donald Trump released a 1 page tax plan that is geared towards putting more money in the pocket of wealthy people like himself. With the little information and lack of specificity outlined in plan, the Committee for a Responsible Federal Budget calculated that based on the plan, America would lost a whopping $5 to $7 trillion in lost revenue over a 10 year period.
CRFB estimates the overall cost could go as high as $7 trillion if limits on tax breaks that the plan suggests apply only to high earners. Or the cost could fall to $3 trillion “assuming credits and exclusions are eliminated as well as deductions.”
But what about economic growth? Treasury Secretary Steven Mnuchin has asserted more than once that the tax plan will pay for itself by generating a lot of growth because the proposed changes will spur investment and create jobs.
CRFB doesn’t buy it, noting that even if tax cuts create more growth than it estimates, there’s “no plausible amount” that can offset the lion’s share of the plan’s cost.
