After the Republicans failure to repeal and replace Obamacare, one of Trump’s main campaign pledges, they move swiftly onto putting Trump’s Tax plan into place. Donald Trump moved quickly on the perceived defeat of his repealing and replacement of Obamacare by announcing that they will focus on tax Reforms. But what are the details of his tax reforms?
The plan states “too few Americans are working, too many jobs have been shipped overseas, and too many middle-class families cannot make ends meet.”
What the tax reform paper states
“1. Tax relief for middle class Americans: In order to achieve the American dream, let people keep more money in their pockets and increase after-tax wages.
2. Simplify the tax code to reduce the headaches Americans face in preparing their taxes and let everyone keep more of their money.
3. Grow the American economy by discouraging corporate inversions, adding a huge number of new jobs, and making America globally competitive again.
4. Doesn’t add to our debt and deficit, which are already too large.”
Donald Trump has presented a four-page tax reform that sets out 4 simple goals for his reforms.
But the plan itself is limited in real information of what it would mean for the average American and whilst some ideas look good on the surface, it is the detail that is lacking that is a cause for concern with no data on the reality presented.
The plan’s detail states that it will change the current tax system will be reduced from 7 bands to 4, they are 0, 10, 20 and 25 percent. He also plans to raise the minimum income for tax to $25,000 if you are single and if you are married and jointly earn below $50,000. He also plans to remove the death tax.
Motivations and positive steps?
However, despite what could be seen as a positive step for those on lower and middle incomes there is decrease in corporation tax of 15%.
This will apply to all business, small and large that also includes freelancers. But the cut itself means that lower to middle income business will end up paying a disproportionate amount compared with larger corporations. 15% of a lower income goes further than that of a higher income.
The motivation for Trump to begin the push for these reforms so soon after the defeat of the replacement for Obamacare is questionable.
But if you look at it from a Trump political perspective rather than the traditional political perspective, this could be a strategy to push through his reforms with little to no opposition. Because he pushed an ultimatum on the party and did not back down from his stance, he can claim to the electorate that he is doing everything he can.
Trump has always conducted business in this manner and nothing will change, when things do not go his way initially, he pushes hard and issues ultimatums often crushing smaller businesses. That is how he regains control of the situations and even if he fails, Trump doesn’t wait around for the result but moves swiftly on to the next project. He is conducting government in the same manner and will win in the long run which is a bigger danger to democracy and America.
