Trump and congressional Republicans unveiled the broad outlines of the tax plan earlier this week. They show up as winners and losers because Trump's plan would impose a one-time tax on an estimated $2 trillion in foreign profits that US corporations have invested overseas.
The biggest truth: This is a tax cut primarily for wealthy people.
Third, the plan would end the estate tax, which would be a brazen giveaway to wealthy heirs.
Trump simply wasn't telling the truth in Indianapolis when he said, "Our framework includes our explicit commitment that tax reform will protect low-income and middle-income households". But the rate cuts for businesses and individuals are sure to add to the nation's mounting debt. But the information released didn't include the income levels applied to the rates, making it hard to know how a typical family's tax bill may be affected.
Inevitably, analysts say, any tax-cut plan produces losers.
In accord with President Trump's stated goal of simplifying the tax code, the proposed tax system eliminates several existing tax measures.
Some families could even get hurt by the proposal. That increase largely reflects the rising costs of Social Security and Medicare as the vast generation of baby boomers continues to retire. The plan also eliminates the alternative minimum tax, or AMT, and the estate tax.
The GOP plan reduces the number of tax rates to three, almost doubles the standard deduction, and makes more people eligible for child- and adult-care tax credits. As for the middle class, the benefits appear to be modest. And given the GOP's longstanding views on taxation, as demonstrated vividly during the Bush administration, it probably won't surprise you what his plan entails. This would return about $1.6 trillion to the government. That may allow Mr Trump to say that his changes to income tax do not benefit the rich, when averaging across states.
Overall, however, Hodge told CNBC he sees the reform plan as reducing tax bills for many. Plans to help the 1%.
The existing tax system allows taxpayers to claim several different types of itemized deductions, including the mortgage interest deduction, the charitable contribution deduction, the medical expense deduction, a deduction for state and local taxes, and several others.
Companies that tend to pay more to Uncle Sam each year will obviously benefit more than those who pay very little. For those wealthy taxpayers, their after-tax incomes would increase 8.5 percent next year. It's not reform if all it accomplishes is to help the rich and short-changes the middle class. The plan would lose $2.4 trillion over the next decade, TPC calculates.
So how to cover that cost?
Kasie Hunt, NBC News' Capitol Hill correspondent, shared a photograph on Twitter of the Republicans behind the plan.
The Tax Policy Center of the Urban Institute and Brookings Institution released an analysis Friday that found the plan would deliver 50 percent of its total tax benefit to taxpayers in the top 1 percent, those with incomes above $730,000 a year. That is, they get far more than their share of the tax cut. That rate was raised during the 1980s to 3.4 percent - where it remained until Pence won the new cuts.
Nor should anyone who worries about deficits be reassured by the promise that cutting taxes will spur economic growth to compensate for lost revenue. That perspective is shared by economists monitoring the financial and credit markets.
American companies have hoarded about $1.3 trillion of cash overseas, where it's not subject to US taxes, according to Moody's.