According to an analysis released by the Tax Foundation, Hillary Clinton’s tax plan “would lower wages and cost the country more than 300,000 jobs.” The Hill,
The group estimated that the Democratic presidential front-runner’s plan would reduce the nation’s gross domestic product (GDP) by 1 percent over the long run by imposing higher marginal tax rates on capital and labor.
“This reduction in GDP would translate into 0.8 percent lower wages and 311,000 fewer full-time equivalent jobs,” the Tax Foundation said.
Clinton’s tax plan includes a 4-percent surtax on people making more than $5 million per year, enacting the “Buffett Rule” so that taxpayers with adjusted gross incomes over $1 million pay at least 30 percent in taxes and capping the value of itemized deductions at 28 percent, the Tax Foundation notes.
The proposal would raise government revenue by nearly $500 billion over 10 years when not considering the broader effects on the economy. When reduced economic output is taken into account, the Foundation said, federal revenue increases by $191 billion.
When not accounting for changes in the economy, Clinton’s plan would lower the after-tax income of people in the top 10 percent by 0.7 percent and lower the after-tax incomes of those in the top 1 percent by 1.7 percent.
But when the reduced GDP is taken into consideration, Clinton’s proposal would lower all taxpayers’ after-tax incomes by at least 0.9 percent, according to the analysis.
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