News Release: Trump tax plan would give richest 1 percent of taxpayers in Montana an average $68,950 tax cut while working people get $190 or less
Oct 09, 2017
A new analysis from the Institute on Taxation and Economic Policy
reveals the Trump GOP tax reform framework would fail to deliver on its promise of largely helping middle-class taxpayers, showering 67.4 percent of the total tax cut on the richest 1 percent nationwide. In Montana, the wealthiest 1 percent would receive an average tax cut of $68,950, compared with an average tax cut of $190 or less for the bottom 60 percent of taxpayers in the state. Low- and middle-income families, representing the bottom 60 percent of taxpayers, would receive only 9.1% of the total tax cuts.
The 50-state analysis examines the overall effect of the Trump tax plan on federal revenue as well as its impact on taxpayers in each of the 50 states. In sum, the plan would lose $1.5 trillion in federal revenue over the next decade, putting at risk critical investments in communities. In Montana, federal funds represent nearly half of the state budget and are the largest single source of revenue for the state.
“The Administration’s proposed tax cuts will largely benefit the wealthy and would likely come with a heavy dose of cuts to investments and vital services for Montana communities.”
said Heather O’Loughlin, co-director of the Montana Budget and Policy Center. “At a time when many Montana families are working hard for low pay and living month to month, this plan would give the wealthiest one percent a tax cut that far exceeds the average annual wage in Montana.”
“We have seen firsthand in Montana the struggles of dealing with lower revenue, in part, because of state tax cuts that benefit the super wealthy,”
said O’Loughlin. “Federal proposals for tax cuts aimed at the wealthy will result in less federal investment in our state and average Montanans, at a time when we are already facing tight budgetary constrains.
The 50-state report tells a complicated story of where income is concentrated, but the bottom line is the wealthiest in Montana and their counterparts in other states will benefit most.
For a more detailed breakdown of how the tax plan would affect Montana taxpayers, go to: http://itep.org/trumptaxprelim/