Trump tax cut has actually raised taxes for 10 million American families, report says – ThinkProgress



Donald Trump ran in 2016 promising that every American would benefit from a tax break. According to a new analysis, it has already increased taxes for about 10 million families.

The Center for American Progress released its calculations Friday, based on data from the non-partisan Institute on Taxation and Economic Policy. The study found that 10,260,263 US families had benefited from a tax increase last year, thanks to the president's 2017 Tax Reduction and Job Creation Act. (ThinkProgress on an independent editorial information site hosted at the Center for the American Progress Action Fund.)

"Everyone benefits from a tax break, especially from the middle class," Trump told CNN in May 2016.

When he signed the bill in December 2017, he said the bill would immediately benefit all Americans. "They will start seeing the results in February. This bill means more net pay. It will be an amazing Christmas present for hard-working Americans, "he boasted. "I said I wanted to do it before Christmas. We did it. "

As taxpayers have filed their 2018 taxes in recent weeks, many have found that they did not benefit from the repayments that they had in the past or that they were not even required to pay. money to the federal government. Proponents of the bill dismissed these concerns, suggesting that the higher salary earned through the bill means that people do not suffer such an excessive withholding tax – a feature, not a default.

But these figures reveal that for millions of Americans, it is not just a misconception; their taxes have actually increased thanks to the law. This was largely due to the removal of personal exemptions and dependencies, the capping of SALT deductions and the elimination of business expense deduction. The SALT deduction ceiling has particularly punished families in states like California, Illinois, New Jersey and New York, which depend on higher incomes and – probably not by chance – voted in large numbers for the Trump's opponent in 2016. About 1,736,118 Californians and 1,211,721 New Yorkers saw the taxes increase, while only 624,481 Texans saw their increases.

Steve Wamhoff, author of the Institute's study on taxation and economic policy, told ThinkProgress that the estimate of 10 million euros is correct. "Most families have benefited from a tax break from the Trump tax law," he observed. "The real problem is that the vast majority of tax cuts have been awarded to people who do not need help. Half of the tax cuts went to the richest five percent, and about a quarter to the richest one percent. Among the richest five per cent, the tax cuts were larger, not only in dollars, but even as a proportion of their total income. "


Source link