Trump’s tax hike over millionaires returns to the table but experts say he will not do a tooth at the ultra-root

• Donald Trump has again flooded a tax rise on people who make several millions a year as part of GOP tax negotiations. But the proposal, which was reduced against the republican principles deeply, would do little to reduce the dispensed revenue of tributaries, according to tax policy experts. It would not raise much money for the budget deficit.

As Republicans in Congress are trying to negotiate a tax policy bill, a decidedly non -republican concept is again on the table: to increase the highest winner tax type.

President Donald Trump asked the president of the house Mike Johnson this week to create a new tax group for people who earn more than $ 2.5 million, the New York Times report and Fortune confirmed.

Trump also studies to end a lagoon that allows finance professionals such as coverage and private capital managers pay lower tax rates than ordinary workers and impose the rewards of shares by corporations, Moments reported. Proposals decidedly populist appeal to the Maga Base, which often emphasizes the party’s responsibility to the working people.

Trump’s old strategist Steve Bannon, who has Medicaid discouraged cutHe also spoke in favor of increasing the highest winners. “The current system we have is not sustainable,” Bannon said last month, according to the Associated press. “I think the alternative is the reduction of the budget. And … it must be an increase in taxes on the rich.”

But the type of modest tax increase that is being proposed would hardly contact the ultra-rich, whose wealth reaches astronomical levels, according to policy experts.

“This is largely symbolic: this will not have a significant revenue effect and will certainly have no significant effect on inequality,” said Howard Gleckman, a leading companion at the Urban-Brookings Tax Policy Center.

Tax revenue of more than $ 2.5 million a year to 39.6%, instead of their current rate of 37% by virtue of the alleged tax reduction and the job law, would raise about $ 8.2 billion this year and affect $ 80,000 from homes, according to TPC estimates. “It’s not just a lot of people,” he said.

Closer, U.S. millionaires and billionaires relatively little gain their income in the form of wages. “The higher the income distribution, the increasing, the less and more ordinary revenues are and the more and the capital gains,” said Gleckman. These benefits are subject to a lower tax rate that applies to the income of investments, such as shares, bonds, mutual funds, real estate and the like.

Capital capital gains, tax base pain

The great technological millionaires and the billionaires that Maga and Trump sometimes collide with a glass, maintaining large amounts of stock in companies that grew at a dizzying speed.

“The increase in the higher income tax rate will have very little impact on most of these billionaires,” said Sarah Anderson, director of programs at the Institute for Policy Studies, Fortune Recently. “This is because they take very little compensation from their companies.” Amazon Founder Jeff Bezos received a salary of $ 81,000 each year, was CEO; Mark Zuckerberg takes a $ 1 salary Goaland Elon Musk has never accepted the salary Tesla He paid him before he removed him completely, according to the company’s securities files.

“Our tax code is really inclined towards the interest of people like these megabilliones,” Anderson said.

“Most of their wealth is in stock and they can avoid taxes completely maintaining these assets and lent them against them,” he said. “If they sell part of their shares … they pay a tax on this income, but to a rate of capital gains with discount.

According to a recent IPS report, Bezos saved $ 6.2 billion in federal taxes since 2017 thanks to paying a lower capital rate, unlike the ordinary income rate, in selling shares.

“I have felt nothing about the Republicans being open to the equalization of the rate (fiscal) between the capital gains and the ordinary income or even increasing the tax on capital gains and, without a doubt, nothing about them supporting a wealth tax or a tax on billionaire income,” said Anderson.

Traditional fiscal Republicans have left their opposition to any fiscal excursion. This group includes Trump’s advisers Steve Moore and Larry Kudlow and GOP Sens. Dave Mccormick of Western Virginia and Ted Cruz de Texas

Senator Mike Crapo, by Idaho, said he was not on board hiking taxes, but could be open to persuaded.

“Right now I am not excited about the proposal, but I must say that there are several people in both the chamber and the Senate who are,” Crapo said at the Hugh Hewitt Podcaster this week. “If the President weighs in favor of this, this will be an important factor that we must also take into account.”

Connecting a $ 4.5 trillion hole

Trump has played with some version of a millionaire’s tax for months. He recently said Weather “love” a millionaire tax but to endure -Ne would to lose him an election.

The fact that the Republican party, who has made a Plead “no new tax” A cornerstone of his identity since the 1980’s, fiscal ascents are even considered to be remarkable. The GOP seeks to compensate about $ 4.5 trillion in expenses, increasing when expanding the 2017 tax reductions and job jobs, and possibly exempt Social Security income and tax councils, two Trump priorities.

A large revenue tax “would be a small part of the total, it would undoubtedly compensate for the challenges that Republicans have by spending,” said Garrett Watson, director of policy analysis of the Tax Foundation, Fortune. (The Tax Foundation has purpose to generally reduce tax rates while expanding tax base by removing deductions and cut

“It is still inconsistent with the republican principles,” he added.

The Gleckman of the Tax Policy Center agrees.

“It will not change much income and give many Republicans the acidity.”

This story originally presented to Fortune.com

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