Expert finds Trump's tax proposal takes money away from 95% of households and funnels it to the top 5%, widening the wealth gap

Expert finds Trump’s tax proposal takes money away from 95% of households and funnels it to the top 5%, widening the wealth gap

Former President Donald Trump’s proposed tax plan has sparked new controversy. It could deliver significant tax cuts to the country’s wealthiest, while burdening the rest with tax increases by 2026, a new analysis shows.

According to a recent report from the Institute on Taxation and Economic Policy (ITEP), the top 1% of workers could benefit from an average tax break of over $36,300. By comparison, the next 4% would see cuts averaging $7,200. Meanwhile, 95% of Americans could see tax increases of between $600 and $1,800, depending on their income bracket.

Don’t miss:

According to the ITEP analysis, Trump, who often touts his tax plan as a boon to average Americans, would instead disproportionately benefit the wealthiest. Steve Wamhoff, federal policy director and senior researcher at ITEP, put it bluntly in an interview with Salon: “It seems like there’s a whole bunch of complicated proposals here to make the rich just a little bit richer and then everyone else to be worse off.” ”

See also: A billion-dollar investment strategy with minimums as low as $10 – Become part of the next big real estate boom today.

The middle 20% of American households earning between $55,100 and $94,100 would see an average tax increase of $1,530 — about 2.1% of their income, according to the ITEP results. The poorest 20% of households earning less than $28,600 would face an average tax increase of $800, representing 4.8% of their income. Essentially, the burden of these tax increases increases as family income decreases.

Other experts like Erica York, senior economist at the Tax Foundation, have offered a more nuanced view. She pointed out that Trump’s proposals often combine regressive taxes like tariffs with more progressive income tax cuts.

Trend: Studies Show 50% of Consumers Think Financial Advisors Cost Much More Than They Do To disprove this, this company offers free matching and a free initial conversation with the right advisor.

“How each income group fares will depend on which combinations of tax and tariff ideas Trump ultimately pursues,” York told Salon in an email. She added that higher tariffs “could outweigh the benefits of reduced taxes for low- and middle-income groups.”

Key to Trump’s tax strategy is his plan to extend most provisions of his 2017 tax law, which expires at the end of 2025. His new proposals include lowering the corporate tax rate from 21% to 20% or even 15% for certain US-made products and eliminating overtime pay and taxes on tips. Additionally, Trump has proposed a sweeping 20% tariff on all imported goods and a higher 60% tariff on goods from China.

See also: These Five Entrepreneurs Are Worth $223 Billion – They all believe in a platform that offers a target return of 7-9% with monthly dividends

Proponents argue that Trump’s plan would increase U.S. jobs and support working families. “President Donald Trump has passed the largest tax cuts for working families in history,” his campaign said in a statement to Salon. But critics warn that the tariffs would act like a federal excise tax, disproportionately affecting low-income and middle-class families.

Read more:

UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get the best trading ideas dailyplus unlimited access to cutting-edge tools and strategies to get ahead of the markets.

Get the latest stock analysis from Benzinga?

This article, “Expert Finds Trump Tax Proposal Takes Money From 95% of Households and Sends It to the Top 5%, Widening the Wealth Gap” originally appeared on Benzinga.com

Recent Posts