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Trump’s 2017 Tax Reform

Source%3A+DW.com
Source: DW.com

Source: DW.com

Source: DW.com

Rudy Burki

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The “Tax Cuts and Jobs Act,” better known as The Trump Tax Plan, which was passed on December 20th in the Senate, is just another dividing factor in the world of American politics. According to President Donald Trump, “It’s time for Congress to provide a level playing field for our workers, to bring American companies back home, to attract new companies and businesses to our country, and to put more money into the pockets of everyday hardworking people.”

The bottom end of the Tax plan will be increased from 10% to 12%, but the middle range and the top end of the taxes will be decreased by about 3-4%, as The Business Insider states. PBS also shows a decrease, but they say the bottom end will stay the same, at 10%, and all others will be decreased by 3-4%. The Estate Tax, or “death tax” as people know it, will also be deleted from the tax plan.

The Business Insider also discussed the tax changes to the business side of the U.S. The corporate tax rate will be reduced from 35% to around 20%. Tax breaks will be reduced, and write-offs will be limited, to help compensate for this reduction in income tax. Personal Tax write offs on mortgages will be limited to $24,000, according to NPR, and businesses will have a much harder time receiving tax breaks.

In the opinion of some economists, the tax plan will add an extra 1.5 trillion dollars to the national debt over the next decade, says CNBC. The GOP believe that long term the growth in American businesses will reduce the national debt, even if they do take a deficit at first. The goal of the tax plan is also to take the economic pressure off individuals, by lowering tax rates, and simplifying the tax submission process. By doing this, more people will be willing to submit their taxes, which will end up adding more money than previously, according to FOX News. CNBC argues that the tax codes are more complex, and that there will not be a significant decrease in the amount of people avoiding taxes.

These tax reductions support up to 90% of the American working class, and will help contribute to job growth, according to FOX. The GOP claims that these new numbers are a good compromise between tax reduction, and stabilizing the debt, and benefits all parties involved. The expectation is that businesses, which will also receive tax reductions, will be willing to pay more to workers that deserve more. CNBC argues that a large portion of the population will not see any improvements, and that job raises and other GOP ideas will not trickle down to the bottom 10%.

The new tax plan was passed on December 20th, and CNN says that it is the biggest tax overhaul in 30 years. This tax overhaul has pros and cons for both sides, and was able to win the Senate majority, and is one of the most celebrated victories of 2017 for the current administration.

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Trump’s 2017 Tax Reform