Middle income tax cuts will ‘simplify taxes and level the playing field’ in the US according to the GOP plan. For those not in the know, GOP refers to the Grand Old Republican Party, currently represented by Donald Trump. The tax bill being presented by the Republicans, those earning over $1 million annually higher than lower earners will get their earnings taxed higher.
Tax Breaks for Many According to Steven Mnuchin
Everybody else will get a tax break according to Steven Mnuchin the government Treasury Secretary. He was speaking Friday, the day after the measure was passed by the Republican majority chamber. He went on to explain that the measures would result in others receiving a tax break.
Said Mnuchin, the benefits of the tax cuts would be felt most by those on lower and middle-level incomes. He also explained that the rich would also benefit, but by means of other provisions. He said that the action taken would level the tax playing field. Like many of the changes made by the Republicans, not everyone agrees.
Special Provisions for the High Tax States: Some Cuts & Some Tax Increases
States such as New Jersey, New York, and California that apply high tax levels will not benefit. In fact, they will be hit because of a provision in the tax bill that eliminates the deduction for state and local taxes. According to Mnuchin, people earning up to $300,000 in such high tax states will get tax cuts. Those earning a million dollars or over will find their personal taxes being increased.
Middle Income Tax Cuts: Who Really Benefits?
Opponents of this middle income tax cut bill claim that this is a hidden increase in taxes on the middle classes. According to the Tax Policy Center, in eight years, practically all benefits of this move would be only to the top 1% of earners. Low earners may see some modest benefits while the middle classes would suffer higher taxes. Is this true or false? Why no answer?
According to the current administration, the move would create growth and enable businesses to hire more workers at higher wages. It moves to the Senate next (which has its own variation of the bill) and will reach President Trump before Christmas. Will middle income tax actually happen? Wait and see!