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| 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?
1)I agree that there is an issue with the unequal taxes between the lower, middle and higher classes. The goal is to increase income. This plan, as of right now, is doing exactly that, however, it could cause future riots on equality because of the percentage each income (based on class) is raised by. Also, America is in debt...taxes are supposed to help out that issue, too. So, lowering taxes, as pleasing as that is, could slow down the "paying debt" process and, possibly, digging us deeper into it.
ReplyDelete2)As said above, public riots may break lose because the lower classes will not be raised as equally as the higher classes (most likely just because they are in a lower class while they have more privileges).
3) The increases will make a broad difference-especially if you're in a higher class.