ECLECTIC RANT: Trump’s proposed tax plan in a nutshell

Ralph E. Stone
Thursday May 04, 2017 - 01:32:00 PM

On the eve of the election, Trump promised to "massively cut taxes for the middle class, the forgotten people, the forgotten men and women of this country, who built our country." During a town hall meeting on NBC's Today show, he was asked if he believed in raising taxes on the wealthy. Trump replied, "I do, I do — including myself. I do." 

However, under Trump's tax plan the top 1 percent would get about half of the benefits under his tax cuts, and a millionaire, for example, would get an average tax cut of $317,000. But a family earning between $40,000 and $50,000 a year would get a tax cut of only $560, and millions of middle-class working families will see their tax bills rise under Trump's plan — especially single-parent families. 

The Trump plan eliminates the $4,000 exemption for each person in a household. 

His tax plan would also eliminate the federal estate tax entirely. Only the wealthiest taxpayers — less than 1 percent — now pay that tax. Ending it would lead to an even greater concentration of wealth in the U.S. 

Economists disagree on whether the tax plan would be good for the economy. The Tax Policy Center says that over the first decade, the government would lose $6.2 trillion in revenue, producing huge budget deficits that could hurt the economy. 

Under his tax proposal, the wealthy class, including Trump, will win big at the expense of struggling low- and middle-income people, who turned out in large numbers to help Trump win the election. While this is not a serious proposal for overhauling a complex and frequently unfair tax code, it should, but probably won't, convince these ardent supporters that they have been betrayed once again by Trump. The question is, when will his lies catch up to him? 

In short, his proposed tax plan does nothing to help the shrinking middle class and will further contribute to wealth inequality -- the rich will get richer.  

This betrayal comes on the heels of the failed American Health Care Act (AHCA) or TrumpCare, authored by Paul Ryan, as a proposed repeal and replacement of ObamaCare. Trump lobbied heavily for passage. According to the Congressional Budget Office, if the AHCA had passed, 14 million more people would have become uninsured next year and by the year 2026, a total of 24 million more Americans would be uninsured than they would be under ObamaCare. The ACHA was diametrically at odds with Trump's pledge on the campaign trail when he promised to cover everyone, avoid Medicaid cuts, and boost funding for opioid abuse. 

Low-and Middle-income Americans who voted for Trump have a right to ask, “what have you done for us so far?” 

But then again, like health care, Trump will soon learn that tax reform is a lot harder than he thought.