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President Trump’s tax plan will cut everyone’s taxes….no really it will! #taxes

Say what you will about his off the cuff speeches and comments, President Trump’s tax plan may actually be a boon to American citizens.  Scott Greenberg, analyst with the Center for Federal Tax Policy at the Tax Foundation has estimated that Trump’s 2015 tax plan “would have grown long-run GDP by 11.5 percent.  The Foundation’s new estimates calculate that the U.S. economy would experience an increase in long-run GDP by 6.9 percent.”

For starters, Trump is looking to simplify Income Tax Rates, offering “the lowest tax rate since before World War II” and shrinking “the tax brackets from seven down to three.  The latest version of the (Trump) plan calls for a standard deduction of $30,000 for married households and three brackets of 12 percent, 25 percent, and 33 percent,”  As for deductions, the Trump plan is not so kind as childcare expenses would not apply for children over 13.  Still the cut to income taxes would make up for the lack of deductions in theory.

"Trump has vowed to eliminate the estate tax, which he and other Republicans label the “death tax.” Trump, however, would enact taxes on capital gains at death.”  In addition, Trump is looking to cut small business taxes to 15%, matching corporate tax rates.  He also proposes “a one-time tax for domestic businesses with trillions of dollars overseas, hoping to incentivize these companies to bring their foreign capital back to the United States.”

The industry with the most to gain is the manufacturing sector, which accounted for 11-12% of US GDP.  Less taxes means larger revenue and more employment opportunities in the near future.  The biggest question with the tax plan is how the government will make up for the loss in revenue.  Although no answer has been given, there are other areas or cuts that can be made to compensate for this.

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