Saturday, March 11, 2017

The rich don't suffer

Under the Trump administration: the very rich, the wealthiest 0.1 per cent of US taxpayers, or those who earned more than $3.7m in 2016, are expected to experience an average tax cut of $1.1m, equivalent to 14 per cent of after-tax income, according to an analysis by the Tax Policy Center. The poorest fifth of households would see their taxes drop by an average of $110 a year, or just 0.8 per cent of after-tax income.

US stocks have rallied since the election result, with the S&P 500 gaining 7.6 per cent and the dollar gaining ground on the euro and British pound. This boost to the value of their portfolios should make the US wealthy feel even flusher in the short term.

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