HERE’S HOW MUCH LESS THE RICH WILL PAY IN TAXES UNDER PRESIDENT TRUMP
Donald Trump’s tax plan aims to provide tax cuts for all income levels, but it’s no secret that the top will benefit the most – and it’s not even close.
Trump wants to get rid of the current seven federal tax brackets and replace them with three brackets of 12 percent, 25 percent, and 33 percent.
So, everyone benefits from lower taxes right? Not exactly.
Tax experts crunched the numbers and estimated that a taxpayer who made $48,000-$83,000 a year would only save about $1,000 under Trump’s proposed plan, while people making $3.7 million or more would receive $1 million in annual tax savings.
Looked at another way – more than half of his proposed tax cuts will go to those in the top 1 percent, according to Forbes – those making $700,000 or more.
This goes against his campaign rhetoric and populist message where Trump stated during the debates that he was cutting taxes “in a big way” for the middle class. Yes – he is cutting them – but it’s just a fraction of what the richest Americans will get.
His tax plan also aims to get rid of tax deductions parents currently claim for children, as well as the “head of household” filing status that single parents typically enjoy.
These are some of the largest tax cut proposals since Ronald Reagan.
This sounds nice and all but there is one major thing missing. So far Trump hasn’t mentioned what spending cuts he will make to offset the additional $7 trillion in lost revenue that the government will no longer take in. That’s a problem. But – it’s also no secret where the cuts will come and who will be hurt the most.
Given that Trump’s plan is very much like a similar plan proposed by House Republicans, it’s fair to say that social spending programs (ones that primarily benefit the poor and less well off) will be first on the chopping block.
Earlier this year, Republican leaders laid out a plan to cut more than $23 billion in food stamps, as part of a $170 billion spending package cut aimed at getting rid of social spending. That still doesn’t account for all the tax cuts Trump is proposing. There’s a huge gap that has yet to be accounted for.
Trump says he will balance the budget but he nor Republicans have yet laid out a plan on how they intend to do so.