Trump Is Promising Massive Tax Cuts But It Sure Won’t Be Low Income Families Who Benefit
From day one, Donald Trump said that he would be bringing in a new tax plan, promising along the way that he would be helping low income and middle class Americans. So, now that his plan is getting closer to being introduced, what is part of it? Decreasing taxes for the wealthiest Americans.
As Bloomberg reports, Trump and other Republican leaders will be releasing a tax plan that “would dramatically cut taxes for corporations and the wealthy, provide a measure of middle-class tax relief and punish some households in Democratic-leaning states like New York and New Jersey.”
Well, so much for THAT promise. But, seriously, is anyone surprised?
Under Trump’s proposal, the number of tax categories will be cut from seven to three. Currently, America’s top earners have a 39.6 percent tax bill. That will be cut to 35 percent. At the moment, it is not clear what the rate will be for the other two categories, although Trump gave a hint as to what low income earners will be facing.
“We think we’re going to bring the individual rate to 10 per cent or 12 percent, much lower than it is now. This is a plan for the middle class and for companies so they can bring back jobs. ”
Well, guess what, at the moment the lowest earners, those making $9,325 or less, are paying 10 percent. The next level up from that pays 15 percent. So, no, there doesn’t seem to be anything for those in low income earners in this tax plan. All of the reductions seem to be at the top end.
As far as corporate tax goes, the change is massive, dropping from 35 percent to 20 percent. Again, Seriously? Yup, seriously.
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All of this sets the Republicans up for another battle with Democrats who have said they will not accept reforms that cut taxes for top earners, according to The Hill. Dems also won’t back a proposal that increases the deficit. The Republicans, however, seem to believe that these cuts will help create jobs and grow the economy, but will it be enough to counter the revenue loss that could lead to a deficit?
As Politico reports, despite any claims he may make to the contrary, Trump has been most focused on cutting corporate and business taxes from the beginning, according to economic adviser Larry Kudlow.
“From the very first time I sat down with him to talk about taxes in the late winter or early spring of 2016, he was very focused on the business side of the tax code. That is where his heart is.”
Yup, of course. Trump’s first priority is not the average American, but his business buddies. Who could have seen that coming? Heck, Trump doesn’t even seem to know what low wage earners are even paying for taxes. That’s a sign right there that these folks are not exactly at the top of his list.
Trump will head to Indiana on Wednesday where he will begin pushing his new tax proposal.