Ready or Not Here I Come
Introduction (and three main points): “Trump's campaign rhetoric may have been populist, but his tax plan isn't.”
(Say most tax experts).
1. Trump's campaign rhetoric promoted tax benefits for
middle-income Americans with him saying: “There will be the largest tax reductions
are for the middle class (Cited in his 4-page: “Contract
with the American Voter”) released just last month.
2. Middle-income Americans pay a relatively modest share of federal income
taxes compared with the wealthy. The Trump plan further limits the scope of
what tax cuts could do for the middle-class while greatly helping the top 1-2%.
3. We have seen big tax cut proposals and tax cuts ever since Ronald Reagan,
but things have been getting worse for the middle-class since.
Specific Highlights:
1. Most married couples with three or more
children would pay higher taxes.
2. Middle-class families as a whole would
receive tax cuts of only about 2%.
3. Those middle-class taxpayers and their measly
2% tax cut would be dwarfed by a windfall tax cut for the top 1% of some 13.5%.
4. Reduce the number of tax brackets from seven
to three, with rates of 12 percent, 25 percent and 33 percent.
5. Slash the top rate from the current 39.6
percent to 33 percent.
6. Repeal the estate tax, which affects only about 0.2 percent of estates — that is those
worth above $5.45 million.
7. Middle-income earners as a whole would have a
small tax cut: taking into account the increases on single-parent families, those
earning nearly $50,000 to about $83,000 — the middle one-fifth — would receive
an average cut of $1,010, according to the Tax Policy Center lifting their
after-tax incomes by a mere 1.8 percent.
8. By contrast, the wealthiest 1 percent — those
earning over $700,000 — would enjoy a tax cut averaging nearly $215,000,
boosting their after-tax incomes a whopping 13.5 percent.
9. The very rich: 0.1 percent of the population
— that is earning above $3.7 million — would receive a bonanza: A tax cut exceeding $1 million.
10. For low-to-moderate income single parents (i.e., a working Mom or Dad), they are going to get hurt and hurt
badly.
The tax hikes that would hit single parents and large families would
result from his plan to eliminate the
personal exemption and the head-of-household filing status – two features
of the tax code that have enabled millions of Americans to reduce their taxable
income.
His other tax changes would
benefit middle- and lower-income Americans for sure, but they wouldn't be
enough to offset those modifications going to the top 1%.
Unlike Trump's other proposals like for immigration and building the
wall, or cancelling trade deals for new ones, his tax plan is in line with
traditional Republican policy that steep tax cuts for the top closely resemble
those put forth by Ronald Reagan and George W. Bush and all Republican-run
Congresses and here we are again – same dynamics with Trump’s tax proposal.
So, I say at this point: “They’re
baaack…!!!”
During the campaign, Trump said his tax cuts — for
individuals and companies — would energize the economy by boosting business
investment in factories and equipment, while leaving consumers with more cash
to spend and create 25 million jobs over the next decade.
Further, estimates show that roughly 7.9 million families with children
would pay higher taxes. Some 5.8 million of those families are led by a single
parent. An additional 2.1 million are married couples. Analysts from the conservative
Tax Foundation and American Enterprise Institute both agree with these conclusions.
For all Trump voters (vast majority
in the low-to-middle class brackets discussed in the Trump tax plan): You have been had…!!!
So, from here on out, HANG ON TIGHT…!!!
Nevertheless, thanks and stopping by.
Oh, yeah and for those who did, thanks for voting to “Make America Suffer Again.”
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