- Gives huge tax breaks to the rich and corporations, loses $3.1 trillion over 10 years, and if paid for will require deep cuts to domestic services. Nearly half (47%) of the tax cuts will go to the top 0.1% of households. Their average annual tax cut will be about $1.3 million. 99% of the tax breaks go to the top 1% of households when fully phased in; they will get an average tax cut of nearly $213,000 a year. The bottom 20% will get a tax cut of just $50. Ryan’s plan will increase the deficit by $3.6 trillion, unless massive cuts are made to benefits and services that working Americans depend on.
- Slashes corporate tax rates by more than 40%—from 35% to 20%—losing $1.8 trillion over 10 years. To make up for some of that lost revenue, Ryan’s plan effectively imposes a 20% sales tax on all imported goods. These costs are expected to be passed along to consumers as much higher prices. Corporations are already dodging their fair share of taxes at a time of record profits. Only $1 out of $9 of federal revenue now comes from corporate taxes; it was $1 out of $3 just 65 years ago.
- Gives multinational corporations with profits stashed offshore a tax cut of about $600 billion. Big American corporations hold $2.6 trillion in earnings offshore on which they owe about $750 billion in U.S. taxes. Ryan would cut the tax rate on those offshore profits from 35% to just 8.75% on cash and only 3.5% on other assets, raising less than $140 billion. This would give tax-dodging multinational corporations an undeserved tax break of more $600 billion.
- Reduces the top tax rate on the wealthy from about 40% to 33%. Ryan’s overall plan to consolidate and lower tax brackets would cost $1.5 trillion over 10 years, mostly benefitting the rich. Wealthy households should be paying more in taxes, not less, since they capture a disproportionate amount of the nation’s income. Between 2009-2015, the top 1% of households received over half of all real income growth, more than the other 99% of Americans combined.
- Slashes in half the effective tax rate on capital income, which is mostly received by the wealthy, losing nearly $500 billion. By allowing taxpayers to exclude from their calculations one-half of their earnings from capital gains, dividends and interest, Ryan effectively drops the top rate on such passive income to 16.5%. This reduces the tax rate by almost one-third on capital gains and dividends (from 23.8%), and by one-half on interest. These are sources of income highly concentrated among the wealthy: a third of all dividends go to the top 0.1% of households, and over half to the top 1%. Capital gains are even more dominated by the rich: half go to the top 0.1%, over three-quarters to the top 1%.
- Slashes the top tax rate on hedge funds and other “pass-through” businesses from nearly 40% to 25%, losing $413 billion. Many Wall Street firms, law practices and other big-money outfits organize as partnerships or other business entities, allowing them to pay business taxes at individual rates. Ryan cuts the top tax rate on these “pass-through entity” owners from about 40% to 25%.
- Eliminates estate and gift taxes to boost the inheritances of millionaires and billionaires, losing $187 billion. The federal estate tax only affects estates worth more than $5.5 million, or just one in 500 estates. It is a small curb on the accumulation of dynastic wealth and a key tool in reducing economic inequality.
 Tax Policy Center (TPC), “An Analysis of the House GOP Tax Plan” (Sept. 16, 2016), p. 1. http://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/2000923-An-Analysis-of-the-House-GOP-Tax-Plan.pdf
 TPC, p. 12.
 TPC, p. 10. See “Estimates after macro feedback from TPC Keynesian model.”
 TPC, p. 9.
 Politico, “Retailers fear massive tax increases under House Republican tax plan” (Nov. 23, 2016). http://www.politico.com/story/2016/11/retailers-fear-massive-tax-increases-under-house-republicans-tax-plan-231817
 Institute on Taxation and Economic Policy, “Fortune 500 Companies Hold a Record $2.6 Trillion Offshore” (March 28, 2017). https://itep.org/fortune-500-companies-hold-a-record-26-trillion-offshore/
 TPC, p. 9. See “Deemed repatriation of pre-2017 profits …”
 Washington Center for Equitable Growth, “U.S. Top One Percent of Income Earners Hit New High in 2015 Amid Strong Economic Growth” (July 1, 2016). http://equitablegrowth.org/research-analysis/u-s-top-one-percent-of-income-earners-hit-new-high-in-2015-amid-strong-economic-growth/
 TPC, p. 9.
 TPC, p. 4.
 TPC, “T16-0195 – Distribution of Long-Term Capital Gains and Qualified Dividends by Expanded Cash Income Percentile, 2016” (Sept. 7, 2016). http://www.taxpolicycenter.org/model-estimates/distribution-individual-income-tax-long-term-capital-gains-and-qualified-16
 TPC, p. 9. See “Top rate of 25 percent on active business income.”
 TPC, p. 5.
 TPC, p. 9.
 Center on Budget and Policy Priorities, “Ten Facts You Should Know About the Federal Estate Tax” (Sept. 8, 2016). http://www.cbpp.org/research/ten-facts-you-should-know-about-the-federal-estate-tax