Most people — but not all— would save money under the tax overhaul proposed by President Donald Trump, according to an analysis of the plan.
But who stands to gain the most? Across the board, it's those who already earn the most.
Using an analysis from the Tax Policy Center, Business Insider broke down the financial implications of Trump's most recent tax plan — he has teased the release of an updated plan in the coming weeks — on a variety of tax filers.
By and large, the more you make, the better you fare under Trump's proposal. Those earning over $1 million would see the largest tax break — not just in terms of dollars, but also tax rate reduction and percent increase to after-tax income.
It's important to keep in mind that no law has been passed, so nothing is yet a given. If Trump does release a new plan in the coming weeks, it's possible there will be some significant changes.
Moreover, Trump and House Republicans don't agree on everything, and he may not get everything he wants in a tax plan.
That said, read on to see the breakdown of how the top American earners fare the best under Trump's current tax proposal.
SEE ALSO: 5 ways your wallet will be affected by the economy in 2017
DON'T MISS: Americans spend most of their money on only 3 things
First, here's a quick recap of some of the main changes that would affect people.
• Instead of seven, we'd have three income tax brackets.
Current: 10%, 15%, 25%, 28%, 33%, 35%, 39.6%
Proposed: 12%, 25%, 33%
• The standard deduction would go way up. It jumps from $6,300 to $15,000 for singles; for married joint filers, it jumps from $12,600 to $30,000.
• Personal exemptions and exemptions for dependents would be eliminated, as would the head-of-household deduction.
• Families with children under age 13 could deduct childcare costs, capped at the state average.
• The alternative minimum tax, a complicated surtax that raises rates on middle- to upper-middle-class earners, would be axed. It currently affects nearly 5 million people.
• Gift taxes and estate taxes would be gone; capital gains held until death would be exempt up to $5 million per person.
Overall, under Trump's plan, every income level would see its average federal tax rate decline. The rate reduction increases as annual income increases.
The Tax Policy Center analysis isn't just looking at income tax. It accounts for individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes.
Americans at every income level would, on average, see more money in their pockets. The gains, in raw dollars, are largest for high-income earners, with those making more than $1 million reaping more than $315,000 in gains on average.
See the rest of the story at Business Insider