Chart: How Trump’s Tax Plan Would Affect Middle-Class Workers

This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.

The White House has just 12 days to fix a glaring flaw in President Donald Trump’s tax plan.

That’s because just this morning (Sept. 13), his administration promised to provide further specifics on that plan no later than Monday, Sept. 25.

So what’s the flaw?

The Institute on Taxation and Economic Policy (ITEP) has found that Trump’s tax proposal, if implemented according to the guidelines released on April 26, would reduce the share of taxes paid by America’s “top 1%,” while it would increase the share of taxes paid by the middle class.

The middle class will pay more, and the richest people in the country will pay less.

Check it out…

Trump’s Tax Plan Gives Perks to the “1%,” Shirks Everyone Else

ITEP – a nonprofit, nonpartisan tax research organization – released the following chart this morning within its report.

Trump's tax plan

The chart compares the expected increase or decrease that members of eight U.S. income brackets could expect from Trump’s tax plan, based on the April guidelines.

The organization concluded that Trump’s tax plan would decrease what those in the United States’ highest income bracket (the “top 1%”) could expect to pay in shares of federal, state, and local taxes combined: 20.3%.

Compared to the 23.8% share of total taxes presently paid by this small sliver of the public, that’s a nice 3.5% cut.

Urgent: An $80 billion cover-up? Feds use obscure loophole to threaten retirees… Read more…

Conversely, ITEP found that those in the middle-income bracket (those with an average income of $50,500 per household, according to the agency’s calculations) could expect a 0.3% increase in total taxes paid under Trump’s tax plan.

That comes to about $150 of added taxation these folks will have to pay in federal, state, and income taxes per year.

And if you’re in that tax bracket, you know that $150 is nothing to sneeze at.

For example, American households bringing in $56,000 annually spend precisely that much on groceries per week, according to the U.S. Bureau of Labor Statistics this past February.

Middle-class Americans don’t need a week’s worth of groceries stolen from them every year. In fact, the key to economic growth is a tax cut for the middle class.

So says Money Morning Capital Wave Strategist Shah Gilani.

Shah gave his thoughts on Trump’s tax reform on FOX Business Network‘s “Varney & Co.” on Aug. 30. He told the panel it’s about time the American public sees some concrete details coming out of the White House – and that the markets won’t react to anything less.

But it’s not just the executive branch that’s on the hook here.

“[Investors] want to hear something concrete come out of not just the [Trump] administration, but from Congress too,” Gilani said.

Check out the full conversation right here…



To get full access to all Money Morning content, click here

About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and visitors become smarter, more confident investors.

Disclaimer: © 2017 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.

The post Chart: How Trump’s Tax Plan Would Affect Middle-Class Workers appeared first on Money Morning – We Make Investing Profitable.

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Leave a Reply