Saying plan favors low- and middle-income taxpayers doesn’t make it so
President Trump pledged that his tax plan would favor low- and middle-income taxpayers over the wealthy and said “it’s not good for me” (“Tax plan targets state, local deductions,” Page A1, Sept. 28).
While some essential details are still missing, most key provisions ensure a dramatic windfall for the wealthiest, while low- and middle-income taxpayers will have a modest benefit at best or a significant increase in overall tax burden.
The reduction in brackets means that lower incomes, previously taxed at 10 and 15 percent, would be taxed at 12 or 25 percent, whereas higher incomes, now taxed at 39.6 percent, would be taxed at 35 percent. Eliminating the alternative minimum tax and the estate tax and massively reducing corporate taxes would exponentially favor the wealthiest.
Despite claims to the contrary, the plan targets deductions and credits that are frequently used by the middle class, such as those regarding state and local taxes, and selectively preserves deductions and credits that primarily benefit the rich, such as the research and development tax credit.
Should Trump succeed in implementing this fraud, future generations of low- and middle-income taxpayers would be disproportionately saddled with the burden of much greater national debt.
How one middle-class family mulls prospects (they’re not psyched)
Unique – adj. 1. Being the only one of its kind. 2. Unusual, rare.
Chief economic adviser Gary Cohn said, “I can’t guarantee anything. You can always find a unique family somewhere” (“Economic adviser ‘can’t guarantee’ tax plan’s effects,” Political Notebook, Sep. 29).
Hey. Here we are living in Franklin, a married couple in our 60s, the “unique” middle-class family who would be adversely affected by President Trump’s new tax plan.
Imagine my surprise to find out that, based on our 2016 tax return, we are the “rare” middle-class family who would pay more in federal tax if the state income and local property tax deductions were eliminated, despite increasing the standard deduction by $11,300. My suspicion is that there are many more “unique” middle-class families across this country whose taxes will increase if president Trump’s tax plan is implemented.
From health care machinations to this?
Why doesn’t the Trump administration see the disconnect, or the irony, between its desire to grant massive tax cuts to the wealthy and its screeching about the cost of the Affordable Care Act? Too bad we can’t put this one to a vote: Give millionaires and billionaires more money, or make sure everyone is insured? No brainer, right?