Houston Matters

Would Pres. Trump’s Tax Plan Really Give Average Americans A $4,000 Pay Bump?

Pres. Trump says his proposed tax plan would give the average American household a $4,000 pay raise. Is that true? A Houston economist breaks down the numbers.

President Trump Outlines His Tax Plan
President Donald Trump outlined his tax proposal at Harrisburg Air National Guard Base in Pennsylvania.

President Trump has been traveling across the country to tout his tax reform proposal. The plan would slash corporate tax rates by about 15 percent. And the President said at a recent rally in Harrisburg, Pa., the changes would “likely give the typical American household a $4,000 pay raise.”

That number came from his Council of Economic Advisers, which just released its report on the plan. Their report echoes what the president said.

To break down the numbers, Dietrich Vollrath joins Houston Matters. He’s associate professor of economics at the University of Houston.

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