“Top coat, top hat,
But I don’t worry,
Cuz my wallet’s fat.”
ZZ Top, Sharp Dressed Man
Donald Trump has released his tax plan. Tax Foundation, an independent entity has provided some analysis of the plan. If implemented, the top taxpayers will get a very generous break. The mid-level taxpayers will get a break too, but a rather more modest one.
The top 1% look to get an average tax break of at least $122,400.00, according to Tax Foundation analysis, while the mid-level tax payer could expect a break of, on average, $494.00. Tax Foundation (taxfoundation.org) is an independent tax policy research organization. They’ve been doing this work since 1937.
Using the analysis of Tax Foundation, a top 1% tax payer could expect a tax cut of between $122,400.00 and $192,000.00. If Trump’s projections of a newly thriving economy under his administration hold true, the tax reductions for the top 1% would be more like between $146,400 and $238,400. However, most experts do not expect Trump’s rosy scenario to play out. His projection is for a 3.5% growth of GDP; last year the economy grew at about 2%.
Trump’s plan would favor the wealthiest among us by dropping the top tax rate of 39.6% to 33%. The corporate tax rate would drop from 35% to 15%. Estate taxes and gift taxes would be eliminated.
Pass through income is income that passes through a business to the individual tax returns of the business owner. Trump has said that he would like to apply the 15% rate of business tax to this sort of money. The types of income in this category include sole proprietorships, LLCs, and S corporations. Tax Foundation sees this as a $1.5 trillion for the wealthy.
That’s trillion with a T. $1,500,000,000,000.00. Seems like a lot of tax savings for those that are already doing well. Maybe that would trickle down, but somehow I don’t think so.
I’m kind of in the average range. I’ll vote in my self-interest, and mark my ballot for Hillary Clinton. Her tax plans are much more in line with taking care of the middle class. Bernie is not a choice. Donald is a bad choice.
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