During the vice presidential debate, Indiana Gov. Mike Pence (R) repeatedly claimed that Hillary Clinton and Tim Kaine will raise taxes and spending by $1 trillion.
Pence has made this claim before. Recently, he followed it by vowing that he and Donald Trump are going to “cut marginal income taxes across the board for working families, small businesses, and family farms, and we’re going to end death taxes once and for all.”
An analysis by the Tax Policy Center found that Clinton’s tax proposal will increase tax revenue by slightly more than $1 trillion, but that estimate is over 10 years — longer than a president’s term.
Pence is correct that Clinton has vowed to raise taxes, but forgot to mention that no one making less than a quarter million would see an increase. Instead, Clinton’s tax hikes would focus squarely on the wealthiest, while increasing incomes for the poor and middle class.
Clinton has also vowed to close the carried interest loophole, which allows hedge fund and private equity managers to enjoy lower taxes on their income.
Meanwhile, Trump’s campaign has been coy about what he would actually do if elected president, repeatedly claiming that voters don’t care about actual policy. But he did release a detailed tax plan last year that would cause the government to lose $9.5 trillion over a decade by slashing taxes on corporations and the wealthy.
Parts of this plan involves eliminating what Pence calls the “death tax,” otherwise known as the estate tax. Getting rid of this tax on inherited wealth, which only impacts the richest 0.14 percent of Americans, would cost the government hundreds of billions of dollars in government revenue.
Like the rest of Trump’s tax plan, this provision would massively benefit Trump himself, and allow him to pass on his wealth to his children tax-free.
And despite Pence’s claim that Trump would cut taxes “across the board,” the vast majority of the plan’s benefits go to the top 1 percent.
Though Trump’s plan would cut income taxes for those making less than $25,000 a year, that benefit pales in comparison to what the wealthy would reap.
Trump’s plan would cut income taxes on top earners to 25 percent, cut capital gains taxes on invested wealth down to 20 percent, cut corporate taxes from 35 to 15 percent, and cut them down to just 10 percent for corporations that have hidden profits in offshore banks.
Trump, who may have already found loopholes to avoid paying any income taxes at all for decades, has admitted that all of these provisions would massively benefit himself. Single parents, meanwhile, could see their taxes go up by $1,000 a year.