Trump’s massive tax reduction plan is not for all Americans. It is an atrocity that gives a massive gift to the wealthy, including Trump. It does little for middle-income families.
Projections are 80 percent of the reductions will go to the top 1 percent of households. These families’ average yearly income is $3.6 million and they will get a tax cut in the hundreds of thousands of dollars. Some middle-class Americans may have a tax increase due to loss of personal exemptions such as state and local tax deductions.
Over 3.1 million households are projected to get an average reduction of $1,000 under this plan. Treasury Secretary Mnuchin said about this money, “you can remodel your kitchen, buy a car, take a vacation.” He is so out of touch.
The repeal of the Alternative Minimum Tax would give Donald Trump a $26 million windfall based off
his 2005 return. The repeal of the estate tax (which only applies to estates over $5,49 million per person) would give .02 percent of the wealthy Americans a windfall of $3 million and $20 million for the super rich.
Trump will benefit from this, too. The corporate tax reductions and LLC 15 percent pass through disproportionately benefits the wealthy and shareholders, not the workers, contrary to claims. A $2 trillion deficit will result from Trump’s plan and this plan will not pay for itself, as Trump says.
Trump’s plan targets the wrong folks. It helps the rich and does little for the middle class. It raises the deficit and undermines the ability of government to help those in need such as the elderly. It does not provide better infrastructure or education. Trump cannot justify this gift to the wealthy.
This does not mean it won’t pass, which exemplifies the dysfunction of this Republican-led Congress. That is the bigger problem.