Will Donald Trump's Tax Plan Hurt Middle Class Families? Most Likely
Nobody can deny that a huge part of Trump's success was the racist and sexist rhetoric on which he built his platform. Another element, though, was the economic dissatisfaction in the American middle class. There was a strong desire to shake up Washington this election, and many white, working, middle class families put their faith in Donald Trump. They thought he might just be the solution to their problems. Between threatening to ban whole religions and build a wall to keep out the Mexican people, Trump made sweeping promises to the middle class that he would cut their taxes once he took office. The truth is, though, that Trump's tax plan will hurt middle class families more than it will help them.
The middle class stand to lose the most under Trump's presidency. The president-elected previously promised tax cuts for the middle class, but they aren't exactly what they seem. According to an analysis of his tax plan done by the Tax Policy Center, families earning between $40,000 and $50,000 a year will only receive a tax cut of about $560. The top 20% of income earners, however, will be awarded a much larger tax break under President Trump. Lily Batchelder, a law professor at New York University and visiting fellow at the Tax Policy Center, said that a millionaire would get an average tax cut of $317,000 under Trump's plan. That's a big difference.
Trump's plan puts the country at risk of further widening income inequality, which would have devastating effects for our country's middle class. CNN Business points out that income inequality effects more than just people's wages. If the gap between the country's wealthiest citizens and the middle class continues to widen, then the gap between quality healthcare and education between the rich and poor will also widen.
Another damaging aspect of Trump's plan is that it has to potential to seriously increase our national debt. The national debt stands at over $19.8 trillion as of now, however, Trump's plan may increase the debt to about $25 trillion by 2025. Trump wants to reduce individual and corporate tax rates, while also financing a $1 trillion spending plan in infrastructure, according to Fox Business. The theory is that this would put more money back into businesses and consumers' wallets, as well as create new jobs. As a result, this would lead to faster gross domestic product (GDP) growth than the country is currently experiencing. This plan certainly sounds nice, however, it runs the risk of seriously reducing tax revenue collected by the federal government and lead to an increased national deficit.
Trump's plan comes in large part from House Republicans standing budget plan, championed by Speaker Paul Ryan. Trump is entering the White House as a Republican president with a Republican majority in the House for the first time in a long time. This will make it far easier for Trump to pass his proposed plans than it ever was for President Obama.
This is scary not only for his tax plans, which have the potential to do a lot of harm to the middle class if they don't work, but for other budget cuts, such as medicare and food stamps, supported Ryan and the House majority.
Unfortunately, no matter what Trump pledges, it seems middle class families will be hurting for some time.