Gary Cohen is President Trump’s chief economic advisor. Between 2006 and 2017, he was President of Goldman Sachs. That firm is an investment bank whose principal business is managing stocks, bonds, and other assets of the 1% – that is, the handful of Americans who are millionaires and billionaires.
Cohen and Trump have fashioned a tax bill that will dramatically slash taxes paid by the 1%, while giving small cuts for other taxpayers. The nonpartisan Tax Policy Center estimates that 80% of the tax benefits will go to the top 1% of households, those making more than $750,000 per year
This is not surprising, since the key parts of the bill lower the top tax rate from 39% to 36% and eliminate the estate tax, which only is applied to estates worth $5.5 million or more.
Is this a big deal? The Washington Post says the tax cuts will cost at least $1.5 trillion over the next decade. Eighty percent of those cuts is $1.2 trillion dollars or about $120 billion per year going to people who are already millionaires and billionaires.
Cohen will probably get a parade when he leaves the White House and goes back to Goldman Sachs.