|
wickedsdesires -> The Fiscal Irresponsible Trump' s last tax cuts (5/24/2025 5:46:25 AM)
|
For most Americans, the 2017 Tax Cuts and Jobs Act (TCJA) lowered taxes slightly after changes were made to the standard deduction rate and tax rates on most tax brackets were lowered. The bill also increased the child tax credit from $1,000 to $2,000 per child.
The bill was a major boon for wealthy Americans, who saw big savings after the tax cuts. The bill established a 20% deduction for income through certain business entities, known as pass-through entities, including LLCs and partnerships. It also doubled the estate and gift tax exemption from $5.5m to $11.2m per person, largely an aid to wealthy families.
BoscoX was talking a little about this with decent credible links.
Master Jaguar said something about deductions - hopefully he will explain that on this one too
https://www.theguardian.com/us-news/2025/may/24/trump-tax-bill-analysis
Average federal tax cut in dollars per year, per income bracket percentile
0-20% - $70
20-40% - $390
40-60% - $910
60-80% - $2K
80-90% - $2K
90-95% - $4K
95-99% - $13K
top 1% - $61K
top 0.1% - $252K
Controversial cuts to the corporate tax rate, which dropped from 35% to 21% after the tax cuts were passed, will also be made permanent in the new bill.
A cut to the corporate tax rate has cost the federal government billions of dollars in lost revenue. From 2018 to 2021, the top corporations in the US saved a combined $240bn in taxes after the cuts, according to an analysis from the Institute on Taxation and Economic Policy.
Trump defended the corporate tax cut in 2017, saying that it will be “fantastic for the middle-income people and for jobs”, implying that corporations will use their tax savings to invest in more workers and higher wages.
But some economists say the tax cuts did little to help the middle class. Wage growth slowed in 2019, two years after the cuts were passed, and only modestly grew because of inflation and high demand for workers immediately after the pandemic.
Meanwhile, companies spent more of their savings on stock buybacks – when a company buys shares of its own stock, a move that primarily benefits shareholders – than ever before.
Last year, Goldman Sachs estimated that stock buybacks will reach $1tn this year for the first time ever as share repurchases grow. An analysis from the progressive thinktank Groundwork Collaborative found that 11 top consumer goods corporations, including Procter & Gamble, PepsiCo and General Mills, spent a collective $463bn in stock buybacks since 2017.
Estimates say the tax cuts will cost the federal government $4.6tn in lost revenue over the next 10 years. That goes onto American debt and Trump will add some $20-30 trillion to USA debt in his two terms with no real benefit to most American's. (President Trump approved $8.8 trillion of gross new borrowing and $443 billion of deficit reduction during his full presidential term.)
Analysis from the Yale Budget Lab estimates that higher prices will cause an average American consumer to spend $2,800 more because of tariffs. Those at the bottom of the income distribution could lose $1,300.
Over 10 years 10% tarrifs (which is a tax on the american consumer) will bring in 2.3 trillion.
Reductions to SNAP and Medicare or Medicaid? Will make people even poorer and I think Master Jaguar mentioned other types of deductions, but this is the extent of what I know.
If you are Left or Right you shouldn't be voting for Trump or the GOP, or Maga.
These Tax cuts benefit almost no one and that money goes onto America debt.
In 2023, just over 50% of Americans had an annual household income less than $75,000. The median household income in 2023 was $80,610. This means that roughly half of American households had incomes below the median. In terms of wealth, the bottom 50% of Americans hold only a small portion of total household wealth, while the top 1% hold a much larger share.
|
|
|
|
