Families Facing Tax Increases Under Trump's Tax Plan

Abstract

Donald Trump’s tax plan would cost about $6 trillion over 10 years. Trump claims his plan would cut taxes for every income group, with the largest tax cuts for working- and middle-class families. But despite its enormous price tag, his plan would actually significantly raise taxes for millions of low- and middle-income families with children, with especially large tax increases for working single parents.

This paper explains how Trump’s tax plan would raise taxes on so many families and provides examples of how large these tax increases would be. It conservatively estimates that Trump’s plan would increase taxes for about 8.7 million families. About 20 percent of households and more than half of single parents would pay more in taxes. Roughly 26 million individuals reside in these families facing a tax increase, including 11 million adults and 15 million children.