Trump has recently introduced a new tax plan to country one that may benefit the rich more than the poor. Trump is suggesting that we cut corporation taxes from 35 percent to 15 percent. The same will happen for individual business owners, taking the tax percentage from 40 percent to 15 percent. As individuals, the tax brackets will go from seven brackets to three: 10%, 25% and 35%. This plan is said to cut the tax burden for most Americans, who pay somewhere between 10-39% now. The administration says the plan will ultimately pay for itself by creating revenue. If businesses are making more money then the government is also making more money, allowing the debt to be paid.
These tax cuts are similar to when Reagan was in office, lowering taxes allowed business to grow their revenue and the plan was able to pay for itself. This is the outcome Trump's administration is hoping for, but the slightest hesitation that it will not go as planned is the reason most are concerned. This is a huge risk to take, especially with the way the economy and debt is going. This plan could make he debt worse if it does not go as wanted.
The question now is, will this plan actually help the people Trump's administration is claiming it will? Will the middle class be helped with this plan or will it only make the rich more rich?
Photo Credit: Photographer: Chris Kleponis/Pool via Bloomberg