Donald Trumps Middle Class Tax Cut: Fact or Fiction?
Donald Trump's Middle Class Tax Cut: Fact or Fiction?
With the 2016 campaign headlines screaming about Donald Trump's plan to raise taxes on the rich, many were left wondering what would become of the middle class. Fast forward to 2017, and the scene changed dramatically. It's important to dissect the claims surrounding the middle class tax cut during Trump's presidency to gain a clear understanding of who really benefitted from the changes in tax policy.
Finding the Truth Behind Tax Cuts
When evaluating the truth behind the so-called middle class tax cut under President Trump's administration, it's essential to examine the tax plan and its specifics. According to official documentation, the Tax Cuts and Jobs Act of 2017 was designed to significantly reduce the tax burden on corporations and the wealthy, with the stated intention of spurring economic growth and job creation. However, did this tax plan include the working individual, or was it targeted more specifically at working families?
Unpacking the Middle Class Definition
The concept of the 'middle class' is often vague and can vary in definition. For the purpose of this discussion, we will focus on individuals earning up to approximately $75,000 per year. Dating back to the 2016 campaign period, Donald Trump had promised to cut taxes for the middle class. However, as we navigate through the 2017 and beyond narrative, it becomes evident that the term 'middle class' was swiftly redefined.
The Tax Cuts and Jobs Act of 2017 did significantly reduce the tax rates for individuals and families in the upper-middle class and above, with the top marginal tax rate dropping from 39.6% to 37%. This was a significant change and undoubtedly benefited the higher-income earners. Yet, for individuals earning well below $75,000, the tax cuts were not as substantial.
Targeting and Overlap
While the Tax Cuts and Jobs Act did include some individual tax relief, it was not as broadly targeted at the working individual as one might have anticipated. The provision for the standard deduction to increase from $6,350 to $12,000 (2022 dollars) for singles and from $12,700 to $24,000 for married couples filing jointly, does offer a tax benefit. However, this was not exclusive to the working individual but encompassed anyone within the defined income brackets.
Furthermore, the child tax credit, which increased from $1,000 to $2,000 per child and was made more refundable, was undoubtedly a boon for working families with children. However, the individual working adult without dependents did not receive the same level of tax relief. The Housekeeping and non-specific working individual did not see a proportionate benefit commensurate with the efforts and responsibilities of their role in society.
Conclusion: The Reality of the Middle Class Tax Cut
In conclusion, the purported middle class tax cut under President Trump's administration was a mixed bag. While certain provisions provided tax relief, it was more concentrated on the upper-middle class and families with dependents rather than the vast majority of working individuals. Critics argue that the term 'middle class' has been redefined to include those earning in the higher income brackets, thus minimizing the impact on the lower and middle-income earners.
As we move forward, it's crucial to continually assess the effectiveness of such tax policies and ensure that they genuinely benefit the working and middle-class individuals as intended.