The new college tax plan that President Donald Trump unveiled Tuesday will cost taxpayers $2.3 trillion over the next 10 years, according to an analysis from the conservative Tax Foundation.
The Tax Foundation analysis found that if the tax cuts are not extended for five years, the new tax plan will cost $1.8 trillion over a decade.
The new tax proposal would raise $1,865 billion in tax revenue each year.
But that amount would be a fraction of the revenue lost by eliminating or lowering the child tax credit, which is currently $1 per $1 of income.
The $1 trillion figure is roughly $1 for every dollar of additional tax revenue generated from the tax plan, according the Tax Foundation’s analysis.
It also assumes the tax reform would raise an additional $1 billion per year from the elimination of the estate tax, which the Tax Reform Act passed in 2017.
Under current law, the child and college tax credits are fully refundable.
The Tax Foundation estimates that eliminating the credits and lowering the estate threshold would save taxpayers $7 billion in 2018 and 2019, and $10 billion in 2021.
The new tax reform, if enacted, would cost the U.S. Treasury $2,300 per person over the same period, the Tax Center estimated.
The tax plan would also reduce federal tax payments to states and other localities, which would raise revenues to offset the new taxes.
The proposed tax cut also would result in fewer people earning federal income tax credits, which pay a lower rate on income from wages and salaries.
The top marginal tax rate is currently 39.6 percent, down from the current rate of 39.8 percent.
The proposed tax cuts would cut that rate to 28.6, the lowest in nearly 30 years.
The top marginal rate is projected to rise to 29.6 by 2026.
The current top rate is 35 percent.
The Congressional Budget Office has estimated that the tax cut would raise between $1 and $1 million per household, and the Tax Policy Center estimates that households with children would receive an average tax cut of $1 a year.
The plan would provide $6,200 to $9,700 in additional income for every $1 in tax cuts.
Taxpayers would also be spared the costs of the $500 tax credit for low-income taxpayers.
The Joint Committee on Taxation estimated that eliminating this tax credit would result with a net revenue loss of $7.2 trillion over 10 years.
The tax plan also would lower the corporate tax rate from 35 percent to 21 percent, which Trump has proposed.