Capitol Report: Trump tax plan would cost $2.4 trillion, analysis finds

President Donald Trump speaks during a meeting with members of the House Ways and Means Committee on Tuesday.

The tax framework released this week by the White House and top Republicans would cost the federal government $2.4 trillion in its first 10 years, and give the biggest tax cuts to Americans with the highest incomes, a new analysis finds.

The study from the Tax Policy Center found that next year, the bottom 95% of earners would see average after-tax incomes rise between 0.5% and 1.2%. But taxpayers in the top 1% of incomes — that is, above $730,000 — would see an increase of 8.5%.

Estimates in the study are preliminary, since the framework unveiled by the so-called Big Six left key details up to Congress.

Opinion: What we know and don’t know about Trump’s tax plan.

Yet the cost of the plan, as estimated by the center, may present challenges to Republicans. The Trump administration has said that economic growth will pay for the major tax breaks they envision. But the framework also calls for saving money by eliminating the state and local tax deduction, as well as other deductions.

The TPC has estimated that abolishing the state and local deduction alone could raise $1.3 trillion over 10 years. But that would only make up for about half the cost of the plan, according to the analysis.

See: Cohn says entire tax cut can be paid for with economic growth.

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