Trump's tax reform statement, Missouri |
The White House is not very specific with this project, but priorities include cutting income tax rates, and reducing tax on companies. He notes that a corporate tax rate of 15 percent could make us very competitive. Trump says that the new plan will help the American workforce by boosting peoples wages.
Many Republican politicians including Mitch McConnell support this idea, but say that it needs more work. The plan is expected to raise income in the middle 20 percent of workers by 1.3 to 9 percent after taxing.
Even though this plan guarantees "bigger paychecks" for all workers, the rates for the taxing are not equal. While the middle class taxes are lowered, and their incomes increase by 1-9 percent, higher classes incomes are increased by 10-20 percent. This is obviously a problem, but the plan is not complete yet.
Links to further information:
https://www.cnbc.com/2017/08/30/trump-tax-reform-plan-faces-roadblocks-on-main-street.html
http://abcnews.go.com/Politics/trump-heads-missouri-push-tax-reform-vision-specific/story?id=49511451
Questions for discussion:
1. Do you think there are any problems with the proposed plan? If so, explain.
2. How do you think lower class tax payers will react to this in contrast to higher class tax payers or corporations?
3. Are the increases enough to make a broad difference to paychecks?