President-elect Donald Trump’s proposed tax cuts will save Fortune 500 CEOs hundreds of millions of dollars for their retirements, according to a new study.
A report by the Institute for Policy Studies, a liberal think tank in Washington, found that if Trump is successful in lowering the top marginal tax rate to 33%, Fortune 500 CEOs would stand to save $196 million on income taxes they would otherwise owe if they withdrew from their nearly $3 billion in special tax-deferred accounts.
At the current 39.6% income tax rate, they would owe $1.2 billion to the IRS on their income in the tax-deferred accounts. At Trump’s proposed rate, they would owe $979 million.
The report, which focuses on retirement savings gaps in the U.S., says that the country needs to “unrig the rules that bloat CEO retirement benefits” and that Trump’s tax plan will exacerbate the problem.
Trump’s team, on the other hand, estimates that under his tax plan, the economy will average 3.5% growth over the next ten years and create 25 million new jobs.