Taxes

Trump’s Tax Cuts for the Rich Will Raise Taxes for Others

Written by SK Ashby

The Trump regime and Trump himself has described their one page tax cut plan as the biggest tax cut ever, and that may be true for some individuals, but not for everyone.

According to the Tax Policy Center, Trump's "plan" would provide a massive windfall for the richest Americans, but it would also raise taxes on the middle class and even those at the bottom of the ladder.

From the Wall Street Journal:

One version of the administration’s tax plan – lower rates and fewer deductions – would leave 19% of households with tax increases and still add $3.5 trillion to budget deficits over the next decade, according to a new analysis from the Tax Policy Center. Those potential tax increases are concentrated in the middle class and upper middle class. [...]

While most households would get tax cuts, 19% would see their taxes go up. That’s true in the middle 20% of the income distribution, where nearly one-quarter of households would get a tax increase. And it’s true among people between the 90th and 95th percentiles, where more than 30% would get a tax increase under this approximation of the plan.

How does Trump's plan manage to raise taxes on so many households and still add $3.5 trillion to budget deficits?

The tax hikes on middle and lower income earners included in the plan simply aren't big enough to even begin to cover the cost of his tax cuts for the rich which would quickly become an all-consuming budgetary black hole.

We shouldn't expect the congressional Republican plan will look much different if they ever actually release one.