Trump’s in mind. “The Trump administration proposes

Trump’s
Tax Plan            With Donald Trump being our newly elected President, a
couple of his plans and ideas to help the U.S. strive as a great nation are
highly questionable to some. Whether it be about the wall, immigration,
terrorism or even taxes. Not everyone is up for the idea of a “wall”,
immigration laws are too harsh, and terrorism is still affecting us. One
proposal of Trumps’ that I think will benefit everyone is his tax reform plan.
President Trump’s Tax plan does add to our already ridiculous amount of debt,
but it lowers taxes for the high and middle class while nor lowing or raising
the taxes for the lower class. Small and large businesses will get major tax
cuts and in the end our economic growth will rise to about 3%. (Long). The tax
plan will benefit most, if not all Americans. Many people have different
opinions about this tax plan, some believe it only benefits the wealthy and
business, some think it only helps the middle class, others think this plan is
not beneficial at all while some think it is the best thing Trump has done. Aside
from reducing income and corporate taxes, the tax plan also lowers income tax
rates, eliminates the estate tax and personal exemptions and doubles the
standard deduction. The biggest negative part about the plan is that it will
add to the national debt, which is something President Trump said he wouldn’t
do. There will be many changes with this new tax plan but most of the changes
benefit our nation and our people overall. Understandably the plan can’t
benefit all people at all times, that would be impossible to do, but I believe
Trump executed the best tax plan possible while keeping all Americans in mind.             “The Trump administration proposes to replace the
seven current income tax rate brackets, ranging from 10% to 39.6%,
with three brackets of 12%, 25%, and 33%. This eliminates the
head of- household (HOH) income tax filing status and personal
exemptions while raising the standard deduction and offering
new tax deductions and credits for children.” (McMillin).
On the outside Trump may seem like the guy who only wants what’s good for him,
but, he wants the whole U.S. to strive. The tax plan does still allow the rich to
become even richer. If you make more than $418,000 you will have to pay 35% of
your income tax. The previous amount was 39.6%, so a 4.6% change isn’t too
major or too little. People may be thinking he lowered it to help himself and
his friends, but he is just pursing an economic type of plan that will help the
U.S. long term wise. “On the big economic issues of taxes, spending and
regulation– ones that have animated conservative elites for a generation – he
has pursued, or supported, an agenda that is extremely friendly to large
corporations, wealthy families, and well-positioned rent-seekers.” (Pierson). Trump is even willing to allow Congress to
raise the tax for the upper class, but it’s not in the plan currently. Property
tax is now being capped at $10,000 with this new plan; This can be both a good
thing and bad thing. This can be beneficial because the rich get lower taxes
and won’t have to pay much. Especially those that live in states such as New
Jersey and New York where most of the tax burden is from property taxes.
Interestingly California’s property taxes have been limited since 1978 when
Proposition 13 was passed. The $10,000 property tax limit is predicted to cover
all but about 7% of our population, which will be individuals from the upper
class. This can be a bad thing because if the upper class isn’t putting money
back into the system, then the system gets smaller and smaller over time. I think
this is a fair property tax cap especially when so many people do not have over
$10,000 to claim on their taxes. This was one area of the plan I was impressed
with because the positives of having this property tax cut off greatly outweigh
the negatives. “Political power cannot be directly inherited in our
system of government, but our tax and estate laws ensure that capital
can be, and rather smoothly at that.” (Kuhner).            The middle class, which is about half of our nation’s
population, will benefit the most from this new tax plan. The Senate and House each
have their own tax version; Both plans are similar except that the Senates plan
differs slightly. Eventually after agreeing upon one plan, Republicans will
only have one more step to put the tax plan into action. Now for middle class
Americans who make $25,000, they will see either a $100 savings or a $72
deduction. For those who make $75,000 they will see between $1,711-$2,244 in
savings. Finally, for those who make $175,000 they will see a savings between
$2,264-$3,095. This act also affects middle class families in various ways. The
act increases the Child Tax Credit from $1,000 to $2,000. (Amadeo). The plan
will also double the standard deduction, single filers will go from a $6,350 deduction
to a $12,000 deduction and married joint filers will go up from a $12,700 deduction
to a $24,000 deduction. Doubling the standard deduction and lowering income tax
rates are both big ways for the middle class to benefit from this tax plan. The
steps Trump took towards ensuring the middle class would have these benefits in
the tax plan shows that he is a leader for our whole nation not just for the
wealthy class. One part of the plan that can severely hurt some families is the
personal exemptions now being eliminated. Previously families could deduct
$4,150 for each individual they claimed, although with this being gone some
people may end up paying more in taxes. The plan is not perfect but there is
not a way to make it perfect, some will benefit from the tax cuts while others
may get hurt by the personal exemption being eliminated. Overall with all the
changes made I think the middle class will gain the most from this tax plan.
This is great because that counts for almost half of our nation.  The lower class are the ones who don’t get
affected as much with this plan. Trump’s decision with the lower class is
surprisingly not that dramatic, “For instance, Americans making $10,000 to
$20,000 would see barely any change — a loss worth just 0.14 percent of their
income next year. But Americans making $500,000 to $1 million next year would
see a net benefit that’s worth nearly 3 percent of their income.” (Desjardins).
The lower class will not have a drastic change in their taxes and over time
will see a small percentage change. There is a slight change for them, but the
middle and upper class have a more dramatic change. Lower income families will
receive a credit of $1,200 per year for childcare expenses through the earned
income tax credit. Many low income families pay little to nothing for federal
income taxes due to their deductions being more then their income. Personal
exemptions and standard deductions are the biggest benefit for low income
families. Trump’s tax plan seems like the lower class may not be impacted too
much, but with them already not having too pay much in taxes there is not much
more that can be done right now. We still don’t know too much about the bill,
so we could see over time that all three income brackets will be having changes
to their taxes. We could see taxes for all three income brackets rise or we
could see just one or two classes have higher taxes than the others, but for
now I think Trump did the best he could for lower income families.            Now from a business standpoint, big businesses will be
getting major tax cuts. Currently taxes for them are 35%, Trump will lower it
to 20%. In my opinion this will benefit our economy and businesses will strive
from this. With the new plan, they can write off investments immediately
instead of having to do a little each year over several years. They are hoping
this leads to more business investing which will in turn create more jobs. The
tax plan gets rid of the alternative minimum tax which is a tax that made some
taxpayers double their liability, this was done by their income tax rules and
then their alternative minimum tax rules, taxpayers would then pay the higher
amount. I think it is a good thing this is being eliminated because most
Americans had to end up paying the higher tax rate all these years. It was
intended for the wealthy so they could not benefit from deductions other people
used but over the years the income level was not adjusted for the inflation and
in the end caused millions of tax payers to pay at the higher level.  This plan will help the working class and our
economy, it will help businesses become more successful and help them grow
which in turn will benefit our economy tremendously. “The White House and Congress promised to
close some loopholes that businesses currently enjoy, but no one is saying what
those are yet.” (Long).            “Pass through business” also know as small businesses
also benefit from this plan by having major tax cuts. Their tax cuts will go
from 25% to 12% which is a drastic change. Currently small businesses pay at
their personal income tax level, so this will benefit some if not many.
This essentially allows small businesses to keep more of what they made, this
will allow them to compete with bigger business and give them more
opportunities to expand and grow. Immediate tax write offs
for capital investment expenses, which may encourage owners to expand. This
plan for businesses is all about expanding and growing. The lower tax rates and
tax write offs are the tools needed for business to grow and expand. Trump is
advocating more for big business and their growth, but small businesses are
also a key part of his plan for economic success. The time for small businesses
to become large scale and grow is now and I think with the changes made in this
tax plan this is a great time for these businesses to expand.            While this plan may seem like its benefiting everyone in
all the right places, there are some disadvantages to this plan. We will see
our national debt increase by $1.5 trillion over 10 years which will add to a
grand total of $21.5 trillion. This is a substantial number and one of the
biggest issues about this tax plan was the costs. Although I believe with all
the benefits this plan will adhere to our nation the add to our debt may be a
small price. Some tax payers may also see an increase in their taxes over the
years, especially with the personal exemption being eliminated but I think with
time we will be able to see more of the effects of this plan.The
plan is still in its early stages and we do not know how it will play out over
the years but with the intentions behind the plan, I think this will be a great
change for our nation and our people. This is also a great benefit to business
out there both large and small, giving them the opportunity to expand and grow
which in turn benefits our citizens by allowing more economic growth. And of
course economic growth is what the U.S. needs to continue striving and
hopefully one day our growth will lead to us being able to lower our national
debt. Tax cuts will not last for long, we will see a raise in our taxes over
the years as the plan includes an area where instead of lowering taxes, we
increase them. To be abruptly honest, we just don’t know where this plan will
take us or what this plan will do to benefit us. Everything looks good on
paper, but we just don’t know how reality will be until this plan is in full
effect. “No longer is he simply a fool or villain, but a representative
of a kind of politics that requires patient, detailed analysis
to understand.” (Gill).    Work
CitedAmadeo, Kimberly. “How Trump’s Tax Reform Plan Affects You.” The
Balance, 5 Jan. 2018,                                 www.thebalance.com/trump-s-tax-plan-how-it-affects-you-4113968.Desjardins,
Lisa. “How the Senate Tax Bill Affects Rich and Poor, in Three Charts.” PBS,
Public Broadcasting Service, 28 Nov. 2017,
www.pbs.org/newshour/politics/how-the-senate-tax-bill-affects-rich-and-poor-in-three-charts.Gill,
Navyug. “Overcoming Being Overwhelmed in the Trump Era.” Radical
Teacher, no. 108, Spring2017, pp. 49-51. EBSCOhost,
doi:10.5195/rt.2017.380.Kuhner, Timothy K. “American
Kleptocracy: How to Categorise Trump and His Government.” King’s
Law Journal, vol. 28, no. 2, Sept. 2017, pp. 201-238. EBSCOhost,
doi:10.1080/09615768.2017.1366156.Long, Heather. “The GOP tax plan, explained in
simplest possible terms.” The Washington Post,                                27 Sept. 2017, www.washingtonpost.com/news/wonk/wp/2017/09/27/the-gop-                                   tax-plan-explained-in-simplest-possible-terms/?utm_term=.a495f805fe19. McMillin, Stephen Edward, et al. “Impact of Tax Innovations on Families with
Young Children.” American Journal of Public Health, vol.
108, no. 2, Feb. 2018, pp. 192-193. EBSCOhost,
doi:10.2105/AJPH.2017.304224.Pierson, Paul. “American Hybrid: Donald Trump and the Strange
Merger of Populism and Plutocracy.” British Journal of
Sociology, vol. 68, Nov2017 Supplement S1, pp. S105-S119. EBSCOhost,
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