What Working-Class People Should Know About Trump’s Tax Plan

Like with anything in life, when you make important decisions without first doing research and learning facts, bad things can end up happening. This, unfortunately, is the story of America today. We are currently on the precipice of witnessing one of the largest transfers of wealth this country has ever seen – and most of that wealth will yet again be going to the upper-class at the expense of everyday hard working Americans like you and I.  

Many progressive have been warning voters about this for years and attempting to explain how Republican policies don’t serve the needs of working-class people. It always amazed me to see poor working-class or middle-class voters supporting a party who advocates policies designed to take money out of their pockets and put it in the pockets of rich people. I never understood how people could gleefully vote against their own self-interest. But this is what has taken place and sadly enough, this wasn’t the first time working-class people had been bamboozled by Republicans.  

Donald Trump has recently just proposed a tax plan which would create three tax brackets 10%, 25% and 35%. The plan, according to tax expert Jacob Krikegaard, a senior fellow at the Peterson Institute, would undoubtedly benefit wealthy people like Donald Trump over middle and working class tax payers. Trump’s plan eliminates deductions which have historically benefited middle-class families such as educational credits like student loan interest deductions. The plan would also make it impossible for middle-class families to deduct local and state taxes on their federal return. In the past middle-class households were able to save hundreds of dollars by making these deductions, but if Trump’s plan is enacted these deductions would go away.

Now, that being said, the plan would in fact lower tax rates for everyone across the board. However, when you add in the loses from deduction you no longer have, many people may find that while you have a lower tax rate, that may not translate into you actually paying less or getting more of your money back. Also, the reduction in tax rate proposed for middle-class households is far less than the rate savings which will go to the upper-class. Simply stated, we get crumbs while the rich take the whole cake.

Trump’s plan will provide massive savings for people who earn income, not through labor (like many of us), but people who earn their income through investments. The corporate tax rate would be lowered to 15% providing shareholders and investors millions of dollars. The independent Tax Policy Center projects that 51% of the benefits from this tax plan would go mostly to the wealthiest 1% of tax payers – meaning, the most wealthiest people in the country would benefit the most. With the repeal of the inheritance tax, lowering rates on stocks, bonds and real estate investments – this plan would amount to trillions of dollars in tax cuts for millionaires.

So, you may be asking yourself, how in the world does Trump plan to pay for this? After all, on the campaign trail he constantly spoke about how broke the country was – and this plan alone will cost the country $9.5 Trillion over the next ten years. I don’t know how he does math, but from my calculations you don’t fix a deficit by decreasing the amount of money you bring into the treasury – or by increasing spending. So, how will Trump and Republicans pay for this? It’s simple….by eliminating your services!!

While the rich celebrate and have the financial times of their lives, working-class people will be footing the bill by losing cost-saving tax credits, losing medical coverage, losing funding for schools, losing funding for the disabled, losing funding for affordable housing, losing funding for public safety projects, losing funding for agencies which make sure the water we drink and food we eat is safe, losing funding for community development projects which revitalize our towns and cities and so much more. We lose while Trump’s wealthy friends win, and win big!

But why would we expect anything different? Trump spent most of his Presidential campaign attacking Hilary Clinton and Ted Cruz for their ties to the greedy Wall Street bank Goldman Sachs – which I always felt was appropriate because Wall Street banks have never supported the interests of working-class people. However, Goldman Sachs employees, Jim Donovan and Steven Mnuchin, were hired by Trump, appointed to the Treasury Department and assisted in crafting Trump’s tax plan along with former Goldman COO Gary Cohn, who is now director of White House National Economic Council, and Dina Powell, who is a White House senior counselor on economics. So, I’m not surprised that this plan hurts working-class people because it was developed by Trump’s Goldman Sachs friends who could care less about people like you and I. After all, this is what Trump himself believed and stated… at least before he got elected. In the end, we got bamboozled and lied to. Trump ran as reformer who was going to fight for working-class values and put an end to the “rigged system”, but instead we have a President who is on the verge of pulling the rug out from beneath the very people who voted him into office. Every piece of legislation proposed by the Trump administration thus far negatively impacts working-class households. So, to those people who voted for Trump…I hate to say it, but told you so!!!!