According to NBC news, the new tax plan that in being implemented by the senate will ultimately raise the taxes on 50% of Americans by the year 2027. This is a result of a tax cut that is being presented by President Trump. This tax cut was supposed to be put in place by Christmas but with the increase that Americans will see with their taxes in the future, this policy could backfire.
As stated above, Americans that will see an increase in their taxes that will lead to about 50% of taxpayers paying more by the end of 2027, but 9% of taxpayers will also see an increase in taxes by the end of 2019. One of the biggest reasons that the population is paying higher tax at the end of 2027 is because the tax cuts will eventually expire by the end of 2026, which will result in the taxes of Americans to ultimately increase. This tax cut will help those who are not making as much income, though, as well as those who are making a lot of income. In 2019, the Senate stated that those who are making about $25,000 will get a reduction of about 0.3%, which in reality, is not a very big reduction. The senate also stated that the middle-income earners would receive a reduction of about $850, and those who are at the top will reduce taxes by about 2.2%. As seen from the numbers, the tax cut favors those who are at the top.
Although there are some pros and cons to this tax cut that is being implemented by the government, overall economic growth is also projected to increase in the upcoming years. It is said that the economic growth would ultimately be around 169 billion over a decade. This number is also short of the estimated growth, which is about 1.5 trillion. There is still a lot of controversy over what this tax cut will do and if it is a good idea to implement such a risky policy. What will ultimately be the result of the tax cut? Is it a good idea for the government to implement such a policy?
https://www.cnbc.com/2017/11/20/senate-gop-tax-plan-to-ultimately-raise-taxes-for-half-of-us-tax-policy-center.html
I'd like to plainly say that I hope this isn't whats happening, but its too late. If this tax reform is put through, I could see this causing more of an uproar and even another change in the future. Although, changing the tax code is not that simple. Frankly with one party holding control of the Senate, House and White House, many things can pass now. I am not sure who all this tax reform benefits because I haven't read many great changes. Sadly, it is all up to the people we've elected.
ReplyDeleteI agree with you, Antonio. I believe that this tax reform is not the best decision for our economy looking forward. Although there are some short term benefits that will help the citizens of the United States. I believe that overall this will do nothing but cause more uproar. I also think that this will really hurt the Presidents credibility.
ReplyDeleteIt is interesting to see statistics involved with the tax cut plan. Unfortunately, a tax plan like this could be beneficial to a lot of people and a lot of companies, however, simultaneously, many Americans (over 50%) are going to be hurt by the tax plan. This goes hand in hand with our Harvard guest speaker from Friday's class, as we discussed whether our democracy was an aggregative one or a deliberative one. It seems now more than ever, that our democracy is strictly deliberative. With the controlling party arguing with the minority party over what is important, what our goals are, and what policy should be. Unfortunately, many Americans will be hurt by this, some may benefit from this, but at the end of the day average citizens will be hurt by this plan. I hope in the future our government can come together and do what is right for the majority of Americans.
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