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Report: 20 percent of Americans could pay higher taxes under Trump's plan

President Donald Trump
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President Donald Trump

If Trump sticks to the proposals he has laid out on tax reform, the upper-middle class — those in the 80th through 95th percentiles of wealth — will likely end up paying the most, the Wall Street Journal reports. And overall, about 20 percent of taxpayers will pay more.

That's according to a new study by the Tax Policy Center, which analyzed the implications of what we know so far about Trump's proposed tax plan. The TPC found that households earning between $149,400 and $307,900 are most likely to see the greatest increase in taxes, averaging between $3,000 and $4,000 more annually. Of the 19 million households that make up that income bracket, about one-third would be affected.

In total, the report finds, 20 percent of Americans would end up owing more after tax reforms.

There's a number of reasons that those earning between $150,000 and $300,000 are likely to be hit the hardest. As the Wall Street Journal reports: "Compared with the working poor, they have more ability to pay higher taxes. Compared with the highest earners, they often derive a large chunk of their tax benefits from a host of deductions and exclusions that could be cut back."

Additionally, unlike those in the top five percent, those in this income bracket won't be able to "reap additional benefits from favorable rates on investment income, such as long-term capital gain."

Overall, Trump's proposed tax plan greatly favors the ultra-wealthy.

"Even when taking the tax cuts and all possible revenue raisers together, the administration's proposed tax changes would be highly regressive, with most benefits accruing to the highest-income households," the TPC says.

This goes in direct opposition to comments Trump made in an interview with the Wall Street Journal on Tuesday. "The truth is, the people I care most about are the middle-income people in this country who have gotten screwed," Trump told the Journal. "And if there's upward revision, it's going to be on high-income people."

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