President-elect Donald Trump has said he would “massively cut taxes for the middle class, the forgotten people, the forgotten men and women who built our country,” and that he believes in raising taxes on the wealthy.
When the Tax Policy Center at New York University looked at his proposed tax policy, they found a millionaire’s taxes would be cut by $317,000 a year. Twenty percent of wage earners with the lowest incomes would receive a tax cut of 0.6 percent, the top 1 percent a cut of 6.5 percent and the top tenth of a percent a cut of 7.3 percent. A single parent earning $75,000 per year with two school-age children would actually lose $2,400 due to loss of the $4,000 exemption for each household member, another part of Trump’s plan.
In addition, his plan cuts corporate business taxes from 35 to 15 percent, estimated to cut federal government revenue by $6.2 trillion over 10 years, creating huge budget deficits. His tax plan also eliminates the estate tax paid by less than 1 percent of America’s wealthiest families, further increasing income inequality.
These tax plans are justified as a way to increase jobs through trickle-down economics, a Republican favorite. If this economic theory had worked previously we wouldn’t have the greatest economic inequality our country has seen since the Great Depression.
Even if you are in favor of “shrinking the federal government,” getting anything done that any level of government does, will then require raising state, county and municipal taxes.
Include Trump’s plan to eliminate the Dodd-Frank regulations put in place to help prevent another 2008-style recession and ensuing government debt combined with Wall Street recklessness could blow up the economy for all but the wealthiest.
Help for the middle class indeed.
Douglas Iverson, Prescott