>> The American people this week assessing President Trump's tax plan which, he says, will provide a boost to the middle class and will be tough on rich people like him.>> It's not good for me, believe me. But is it really Reuters' breaking views columnist Gina Chang.>> I think that's one of the big questions as they sell this tax plan because they are trying to show that it's going to help the middle class the most.
But when you look at the actual details, the rate cuts are really going to help the top income earners. They will see their personal income rates fall from about 40% to 35% and more importantly there is a lot of breaks on the so called pass through business such as limited liability companies, partnerships of which actually Donald Trump has hundreds of.
There's also the State tax and the Alternative Minimum tax and many other things that he could possibly take advantage of. He keeps saying that this plan will actually be bad for him but until we see the details it looks like there's actually more in it that could help him.
>> We are going to give middle class Americans a tax cut. Middle class Americans, middle income tax cut.>> Trump's top economics advisor Gary Cohn insisting Trump's tax plan is aimed at benefiting the middle class. But the former Goldman Sachs president wouldn't say whether it would also help his boss.
>> I get your message on the middle class you've made that very clear. But this tax plan, as it stands now, appears that it will benefit the president and his family. Why not just be candid about that?>> Look I've told you it will benefit the middle class.
>> Repetition is going to be the way that they sell this. I'm not sure that's really going to be music to everyone's ears just given that the headline figures are really about the wealthy and the corporate tax cuts. So there's a host of breaks in there that I think frankly middle class people will be concerned about that.
It's not really about them.>> The last tax over haul was passed in 1986 under Republican president Ronald Reagan. The idea being that tax cuts for the wealthy would trickle down to the masses. But Chan says history has shown otherwise.>> The only real correlation that seems to have occurred over the years is that these tax cuts, particularly for the wealthy have only increased income inequality, which is obviously was a big issue in the 2016 presidential campaign.
And if Republicans aren't careful, it will become an issue again in the coming elections.>> Thank you very much. You just want massive tax cuts that's what you want.>> That's the only reason you are going so wild.>>