Why we need to audit our corporate tax bill
We’ve been promised that the Trump tax cuts will be for everyone, and yet many of us aren’t sure how they’ll be paid for.
The Trump tax cut has a big hole in it.
The GOP’s latest plan is a $4 trillion giveaway to the rich and the rich alone.
The nonpartisan Tax Policy Center estimates that if we take out the tax breaks for the wealthy, we’d still be left with $2.8 trillion of debt.
The big question: How will the Trump Tax Cut be paid back?
Here’s what you need to know.
The Tax Cuts for the Rich (CFR) The GOP plan would provide $2 trillion in tax cuts for the wealthiest Americans, and $400 billion to the middle class.
But what does the plan actually mean for us?
The plan does not take away any deductions, credits, or credits for the middle or lower class.
Instead, it creates new deductions, breaks, and credits.
That means that many middle and lower-income households will not see any tax increase, as they’ll only see a modest tax cut.
However, the Trump plan does cut taxes for the rich more than it does for the average American family.
And, because it reduces corporate taxes, the rich get a bigger slice of the tax pie.
For every $1 in corporate income, the top 1% of households pay a whopping $1,077 more in taxes than they would if the plan were not in place.
If the plan is passed into law, the richest 1% would pay almost half of all corporate taxes in 2024, compared to an average American household’s tax burden of $1.26 trillion.
That’s a $2,700 tax cut for the richest Americans, but only $300 in tax relief for the median household.
In fact, if you add up the cost of all tax breaks, the median family would only pay $2 a month less in taxes.
But the tax cuts are far from the only benefit the Trump White House wants to give the rich.
The plan also includes a $1 trillion tax cut to corporations and pass-through businesses.
This $1 billion of tax relief is paid for by eliminating a provision that allows for tax credits and deductions to be taken out of individual tax returns for the purpose of increasing the standard deduction.
That $1 tax cut is the only thing the Trump proposal is actually offering to middle-class families.
For middle-income families, the plan would give $1 for every $10,000 in taxable income.
This would mean that middle- and lower in-between-income people would pay an average of $2 more in federal taxes over the next 10 years.
The real tax cut comes from the elimination of a deduction for state and local taxes.
The tax plan cuts those taxes by $300 billion over 10 years, and eliminates most state and city income taxes entirely.
The House bill is $1 higher for individuals, and the Senate bill is a little less, but neither is nearly as large a cut.
The top 1 percent of households would pay $4,300 more in income taxes under the Senate plan than they do under the House bill.
For those households, the tax cut would be even larger, since they would pay about $6,300 less in federal income taxes.
In 2018, the average family would see a tax increase of $5,500, and an individual’s tax cut of $13,700.
The average tax increase for a middle-in-the-middle family is $4.00, and for the top one percent, it’s $9,900.
But, of course, that doesn’t include the tax benefits for the affluent.
The rich would get an additional $400,000 tax break.
The middle class would get a $500,000 break.
And for corporations, the corporate tax cut amounts to $1 million.
So, in total, middle-middle income families would pay around $2 million more in tax in 2025.
That brings the average tax burden for the American people down to $2 in 2024 and $1 by 2025.
This is a massive benefit for the super rich, especially for the highest earners.
The richest one-tenth of 1 percent would get $2 billion of the $1+ trillion in revenue the Trump administration estimates it will save.
This comes from a Trump administration that is already on the hook for $1 to $4 in revenue from corporate tax cuts over the decade.
So even if Trump’s plan is completely paid for, the rest of the GOP tax cuts would be more than offset by their cost.
The $1 Trillion Trump Tax CUT: $2 Trillion or More The Trump Tax Reform Plan Would Increase Taxes on the Rich The Trump plan will add $1-trillion to the debt over the coming decade.
But while the tax bill will increase the debt by more than $2trillion, it will not increase the national debt by a significant amount.
It’s true that the tax