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Effects of Trump's Tax Proposals

jpn

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Former President Trump has offered several tax proposals, which are all included in these estimates:
  • Extending the temporary provisions in Trump’s 2017 tax law that will otherwise expire at the end of 2025, except for the $10,000 cap on State and Local Tax (SALT) deductions, which Trump says he would not extend
  • Exempting certain types of income from taxes (overtime pay, tips, and Social Security benefits)
  • Reducing the corporate tax rate from 21 percent to 20 percent and then further reducing it to 15 percent for “companies that make their product in America”
  • Repealing tax credits enacted as part of President Biden’s Inflation Reduction Act that provide incentives for the production and use of green energy
  • Imposing a new 20 percent tariff on imported goods, with a higher rate of 60 percent for goods from China.
If these proposals were in effect in 2026, the richest 1 percent would receive an average tax cut of about $36,300 and the next richest 4 percent would receive an average tax cut of about $7,200. All other groups would see a tax increase with the hike on the middle 20 percent at about $1,500 and the increase on the lowest-income 20 percent of Americans at about $800.

 
This may be why senior voters are moving to Harris . Trump's plan would deplete the SS reserve in 6 years


What Would the Trump Campaign Plans Mean for Social Security? | Committee for a Responsible Federal Budget

2024-10-21-The Trump campaign plans would increase Social Security's ten-year cash shortfall by $2.3 trillion, make the program insolvent by 2031, increase Social Security's annual shortfall by 50 percent, and lead to a 33 percent across-the-board benefit cut by 2035.
www.crfb.org
 

From FY2023 tax tables Single person.
 
Here are the numbers on who is paying what in taxes. The misinformation by democrats is laid bare in this article and the information is from the federal government.
Democrats rant on the rich paying their "fair share". What is "fair share"? Maybe a look at history will help clear up who is paying the bulk of taxes in America.

In the 1920's the highest tax rate was cut from 73% to 24 %, this was declared a tax break for he rich. The combined top marginal normal and surtax rate fell from 73 percent to 58 percent in 1922, and then to 50 percent in 1923 (income over $200,000). In 1924, the top tax rate fell to 46 percent (income over $500,000). The top rate was just 25 percent (income over $100,000) from 1925 to 1928, and then fell to 24 percent in 1929. The outcome: When the rich,(people making over $100,000 or the equivalent to a couple of million today), paid 73% income tax rate they paid 30% of the total federal tax. After the tax cuts for the rich, the rich were actually paying 65% of the federal taxes. those people making $5,000 and less were paying 15% of the federal tax prior to the tax cut after it they were paying 0.0025%, one quarter of one percent. The share of true millionaires of that time went from 4% to 19% afterwards.

So the myth of cutting taxes benefiting the rich is really just a political ploy by the liberals.

Heres the most recent numbers. This is based on total portion of the tax bill paid compared to total amount of income earned. According to the 2017 returns, which is the most complete data breakdown (done 2020) of taxes paid here are the numbers.



These numbers show the percentage of the total federal tax paid compared to the total portion of income earned in the U.S.

Top 1% paid 38.5% of taxes on 21% of total income (top 1% paid 38.5% of all taxes while earning 21% of all income)

Top 5 to 1% paid 20.7% of taxes on 15.5% of total income

Top 10 to 5% paid 10.9% of all taxes on 11.2% of all income

Top 25 to 10% paid 16% of all taxes on 21.4% of all income

Top 50 to 25% paid 10.8% of all taxes on 19.6% of all income

Bottom 50% paid 3.1% of the taxes on 11.3% of total earnings

Summary of the Latest Federal Income Tax Data, 2023 Update

The latest IRS data shows that the U.S. federal individual income tax continued to be progressive, borne primarily by the highest income earners.
taxfoundation.org
 
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Democrats rant on the rich paying their "fair share". What is "fair share"? Maybe a look at history will help clear up who is paying the bulk of taxes in America.

In the 1920's the highest tax rate was cut from 73% to 24 %, this was declared a tax break for he rich. The combined top marginal normal and surtax rate fell from 73 percent to 58 percent in 1922, and then to 50 percent in 1923 (income over $200,000). In 1924, the top tax rate fell to 46 percent (income over $500,000). The top rate was just 25 percent (income over $100,000) from 1925 to 1928, and then fell to 24 percent in 1929. The outcome: When the rich,(people making over $100,000 or the equivalent to a couple of million today), paid 73% income tax rate they paid 30% of the total federal tax. After the tax cuts for the rich, the rich were actually paying 65% of the federal taxes. those people making $5,000 and less were paying 15% of the federal tax prior to the tax cut after it they were paying 0.0025%, one quarter of one percent. The share of true millionaires of that time went from 4% to 19% afterwards.

So the myth of cutting taxes benefiting the rich is really just a political ploy by the liberals.

Heres the most recent numbers. This is based on total portion of the tax bill paid compared to total amount of income earned. According to the 2017 returns, which is the most complete data breakdown (done 2020) of taxes paid here are the numbers.



These numbers show the percentage of the total federal tax paid compared to the total portion of income earned in the U.S.

Top 1% paid 38.5% of taxes on 21% of total income (top 1% paid 38.5% of all taxes while earning 21% of all income)

Top 5 to 1% paid 20.7% of taxes on 15.5% of total income

Top 10 to 5% paid 10.9% of all taxes on 11.2% of all income

Top 25 to 10% paid 16% of all taxes on 21.4% of all income

Top 50 to 25% paid 10.8% of all taxes on 19.6% of all income

Bottom 50% paid 3.1% of the taxes on 11.3% of total earnings
 

Trump proposals could drain Social Security in 6 years​

President Trump’s proposals to eliminate taxation of Social Security benefits, end taxes on tips and overtime, impose tariffs, and expand deportations would all widen Social Security’s cash deficits. Under our central estimate, we find that President Trump’s agenda would:
  • Increase Social Security’s ten-year cash shortfall by $2.3 trillion through FY 2035.
  • Advance insolvency by three years, from FY 2034 to FY 2031 – hastening the next President’s insolvency timeline by one-third.
  • Lead to a 33 percent across-the-board benefit cut in 2035, up from the 23 percent CBO projects under current law.
  • Increase Social Security’s annual shortfall by roughly 50 percent in FY 2035, from 3.6 to 4 percent of payroll.
  • Require the equivalent of reducing current law benefits by about one-third or increasing revenue by about one-half to restore 75-year solvency.
 
Integrityrespec said:
Here are the numbers on who is paying what in taxes.
Click to expand...
Those numbers are income tax only. The lower classes pay far more of their income in payroll tax.

Also, one of the burdens listed in my OP is the tariffs Trump is proposing. Those will hit the lower earners far harder than those with more income.
 
I am in favor of cutting taxes under any circumstances, and for any excuse, for any reason, whenever it's possible.

(But SPENDING cuts must always accompany cuts in taxes, otherwise we get deficit spending, which is bad.)
 

Summary Effects of Trump Agenda on Social Security​

LowCentralHigh
Ten-Year Change in Cash Balance-$1.3 trillion-$2.3 trillion-$2.8 trillion
Change in 2035 Balance (% of payroll)-1.0% of payroll-1.8% of payroll-2.2% of payroll
Change in 2035 Balance (percent)-28%-50%-61%
Year of Insolvency (Current Law = 2034)203220312031
Cut in 203529%33%36%
 
Exactly why I, for one, will be voting for Kamala Harris.

Too close to the finish line to have the SS rug yanked from under me.
 

Wealthier people pay a higher percentage of taxes than poorer people. News at 11.

You do understand that America has one of the biggest gaps between the haves and the have nots, right? Apparently, you want middle class Americans to live worse and the billionaires live better, if that's even possible.

From 1956-1961, the top marginal tax rate was 91%. And you know what else? The economy boomed at that time and the rise of the national debt was marginal. So, cry me a ****ing river
 
SkyChief said:
I am in favor of cutting taxes under any circumstances, and for any excuse, for any reason, whenever it's possible.

(But SPENDING cuts must always accompany cuts in taxes, otherwise we get deficit spending, which is bad.)
Click to expand...
There in lies the problem, the spending cuts never or rarely occur.
 
I don't think it will ever happen but I would be in favor of flat tax plans that have been floated around.

Its gives the government a tool to cool down the economy if its going to hot and heat up the economy if going too cold.
 

US Social Security is currently funded until 2035.

Trump’s proposals would lead to the fund's insolvency by 2029.

The big concern is the elimination of taxes on social security which will cost the fund about 1.5 trillion over the next decade.

It's beyond stupid that a multimillionaire boomer wouldn't have to pay tax on SS income. The average boomer net worth is 1.2 million.
 
Social Security needs to be protected, not gutted. Vote Kamala Harris for responsible fiscal leadership.
 
The average boomer net worth is 1.2 million? Who in hell sold you that lie? That isn't merely a lie, it's an insane distortion of reality. You want us to believe that almost every person we meet in Walmart or the grocery store over the age of 65 is a millionaire? Insane. So, uhhh, WTF do we even need or want social security?

With one such ridiculous lie in your claim, how are we supposed to believe anything else you might say?
 
You should be more careful about who you're calling a liar with such uninformed enthusiasm, Beruit. Right @Allan?

Generation Money: Baby Boomers' snapshot

With half of the nation’s wealth in the hands of Baby Boomers, let's see how this generation measures up.
www.empower.com

The Average Baby Boomer Has a $1.2 Million Net Worth — See How You Stack Up

Baby boomers are the post-World War II generation, a time that saw an unprecedented jump in the American birth rate. Boomers are now between ages 58 and 76, and all of them will be 65 or older by...
finance.yahoo.com

It's always good to beware of "averages." When boomer Bill Gates walks into a pub, the average net worth of everyone in the pub soars. People think of "average" as a pseudonym for "typical," and that's often wrong. The median is usually the better representation of "typical." According to a MagnifyMoney analysis of Federal Reserve data, a baby boomer's median net worth is $206,700.

Also, equity in one's house plus a healthy retirement fund can easily push someone's worth over a million dollars without coming anywhere near a "millionaire's" lifestyle.
 
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Thanks.
jpn said:
When boomer Bill Gates walks into a pub
Click to expand...
This sounds like the beginning of a good joke.

@Beruit 1978 my point is that there are a lot of wealthy and very wealthy retirees. Why shouldn't they pay taxes on SS so that a) the fund is replenished and b) people with lower income can pay less?
 
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