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Congressional Republicans dispute that their plan would ultimately help wealthy families more than it would help the middle class.
Congressional Republicans dispute that their plan would ultimately help wealthy families more than it would help the middle class.

Trump Tax Plan Will Skyrocket National Debt

In dollar terms, debt held by the public would total $31 trillion in 2027 and gross debt would total $36 trillion–over 50% higher than where it is today

Trump Tax Plan Will Skyrocket National Debt

The Committee for a Responsible Federal Budget released its analysis of the Trump Tax Plan, and their conclusions are shocking:  The Trump Tax Plan could cost as much as $7 trillion and skyrocket the national debt much higher than it already is. In fact, they estimate that Trump’s Tax Plan would increase the national debt to 111% of GDP–higher than any time in US history.
And here’s the really scary part: They warned that “no achievable amount of economic growth could finance it.”  In dollar terms, debt held by the public would total $31 trillion in 2027 and gross debt would total $36 trillion–over 50% higher than where it is today in just a decade, news outlets reported.
Trump promised Americans “the largest tax cut in our country’s history”. But for low-income households, Trump’s plan would amount to crumbs. The poorest would get an average tax cut of about $60 a year, according to an analysis by the Tax Policy Center. Middle-income families would get about $300 on average.
Republican Sen. Chuck Grassley of Iowa took to Twitter on Thursday to tell Trump that the tax cuts in the tax reform package he is pitching would not be the largest in the history of the US.
Grassley, who chaired the Senate Finance Committee when former president George W. Bush’s tax cuts were passed in 2001, adjusted the cuts from that package into 2016 dollars to make his point.
Grassley wrote that, when adjusted to 2016 dollars, the amount cut in 2001 was equal to $1.85 trillion in cuts. The senate budget blueprint unveiled last month provides room for $1.5 trillion in tax cuts as a result of Trump’s tax plan.

  Benefiting the Rich
“There’s no significant benefit for low-income families,” said Elaine Maag, a senior research associate at the Tax Policy Center. “It’s important because when low-income families get money they tend to spend it, putting it right back into the economy. High-income families tend to save it,” AP reported.
The Tax Policy Center’s analysis says most of the tax cuts would go to the wealthiest Americans. For example, the top 1%—families making about $700,000 a year—would get an average tax cut of $129,000. Tax breaks targeting the wealthy include lowering the top income tax rate from 39.6% to 35%, eliminating the alternative minimum tax, and doing away with the federal estate tax, which is only paid by people who inherit multimillion-dollar estates.
Congressional Republicans dispute that their plan would ultimately help wealthy families more than it would help the middle class. They note that the plan unveiled by Trump and GOP leaders last week is incomplete. The plan would reduce the number of tax brackets from seven to three, but it doesn’t include the income levels for each tax bracket.
The main provisions that would affect low-income families are increasing the child tax credit and raising the standard deduction from $6,300 to $12,000. This would be partially offset by eliminating the $4,050 personal exemption.
Also, the lowest tax rate would increase from 10% to 12%, but the plan doesn’t specify the income levels for each tax bracket.
In the Tax Policy Center’s analysis, low-income families make less than $25,000 a year. That puts them in the bottom 20% of households.
The liberal Center for Budget and Policy Priorities argues that if adding to the national debt leads to spending cuts, low-income families could be worse off.

 Trump Has Been Lying
Trump talking to a crowd of truckers last week said: “The more than 30 million Americans who have small businesses will see—listen to this—a 40% cut in their marginal tax rate,” he said. “Forty percent”, Business Insider reported.
This was a lie. Under Trump’s plan, only 1.8% of small-business owners—about 670,000 people, all with family incomes over $400,000—would enjoy this 40% tax cut.
“For the many American truckers who file taxes as sole-proprietors,  corporations or partnerships, we will cap your top tax rate at a maximum of 25%,” he said. “Substantially lower than what you’re paying now.”
This was mostly a lie. A single trucker would have to make well over $100,000 for this cap to matter—or would need a family income over $200,000, if married. The average trucker makes about $41,000. So, most truckers would come nowhere close to saving from this cap.

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