AP FACT CHECK: Smoke and mirrors in Trump tax plan
A look at some of the claims emerging from the debate sparked by the plan released Wednesday:
TRUMP: "I think there's very little benefit for people of wealth." — to reporters Wednesday
THE FACTS: Actually there's a clear and substantial benefit for people of super wealth: the proposal to eliminate the estate tax. Under current law, the first
Some of Trump's claim rests with the administration's own unique accounting. The administration has said it isn't including the estate tax when making calculations about which income groups would benefit from the plan. Nor is it clear how Trump officials are weighing the benefits of the lower corporate taxes — which would primarily help investors.
More generally, the plan has so many holes — left for
TRUMP: As Indiana governor,
THE FACTS: True, but it wasn't much of a cut.
The measure the vice president signed into law as
That amounts to about
The only other income tax cut in state history was a 0.1 percentage point reduction in the 1970s, according to DeBoer's data. That rate was raised during the 1980s to 3.4 percent — where it remained until Pence won the new cuts.
Overall, Pence's income tax cut is far from the biggest tax cut in
SEN.
THE FACTS: "Each" is a stretch, given the scarcity of detail. He's referring to the proposed elimination of the estate tax, rate cuts on the top tier and on business income reported on personal returns, and an increase in the lowest income tax rate.
But he's playing without all the cards, just as Trump does when making the opposite argument that the rich won't benefit. The income levels at which the new tax rates would apply are not specified and there are no credible distribution tables showing how various income groups would fare.
Middle-income people could benefit substantially from lower tax rates and a near doubling of the standard deduction to
TRUMP on the estate tax: "The farmers in particular are affected." —
THE FACTS: That assertion appears to be at odds with statistics. Only 1.7 percent of family-farm estates were required to file an estate-tax return in 2016 and only 0.4 percent ended up owing the tax, according to an analysis by the
EDITOR'S NOTE _ A look at the veracity of claims by political figures


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