The Trump administration’s plan to cut corporate taxes could affect the nation’s financial health, according to a new study.
The Tax Policy Center’s analysis of the Trump administration proposed plan shows that under the plan, companies with income of $500 million or more would pay an average tax rate of 20.6 percent compared to 28.5 percent under current law.
Under the proposed plan, the rate for companies with less than $500,000 in annual revenue would be 13.4 percent, while the rate would rise to 23.6 to 25.2 percent under the current law under the proposed changes.
The analysis also shows that the Trump plan would reduce federal revenue by $4.3 trillion over the next decade, while lowering taxes paid by companies by $1.4 trillion over that same time period.
Companies with income under $500 billion would pay about $1,700 per employee, while those with incomes over $1 billion would see a tax cut of $3,400.
Trump’s plan would also create a new tax bracket for corporations with revenue of $5 billion or more.
This would raise $4 trillion to $6 trillion in revenue over 10 years.
The plan would make the corporate tax rate even lower than the current 15 percent for the first time in decades, but would add another $2.5 trillion to the federal debt.
The plan would add $2 trillion in interest to the national debt over the 10 years, the Tax Policy center estimated.
Companies would pay a $4,000 tax on their annual revenue of more than $5 million, while they would pay no taxes on profits of less than a $2 million.
Under Trump’s plan, corporations would pay $2,200 in taxes on their profits of $10 million or less, while businesses would pay almost no taxes at all.
The report comes as the Trump Administration continues to grapple with a looming tax bill that has been described as the largest tax cut in U.S. history.
The administration has already passed through a $1 trillion tax cut bill, and it is expected to pass another $1 Trillion tax cut package in 2018 and 2019, the largest in decades.