Trump has put forward a new tax plan. It is only one page long. Some feel that tax reform deserves more effort than one page. Others feel that this one page bill shows transparency, for it is something that Americans can easily understand, and it eliminates the need for lawyers for one to complete his or her taxes. However, there is one question that no one has made an attempt to answer, and that is how much this will cost. Some feel that now is not the time to have the United States strapped for cash. We have war on many footings throughout the world: terrorism, Iran, North Korea, Syria, Iraq, and Russia.
Slashing the budget may be perceived as a weakness to enemies. The United States has interest on its debt that is over five-hundred billion dollars. Our military costs over six-hundred billion dollars, so people are concerned on such a conservative act.
The Tax Brackets
Under the new tax plan, there are to be only three Tax Brackets: ten, twenty-five, and thirty-five percent. As of right now, it is not clear as to where the income brackets begin and end. The Trump administration claims that this will be "the biggest tax cut in history." If this is the biggest tax cut in history, people wonder if this gift from the government is too good to be true. People wonder if the US can handle its domestic obligations.
To fund the government after these tax cuts, something has to be cut from the budget. The good news is that these tax cuts are great for the middle class. Federal, state, local, and sales tax can take up to forty percent of one's income. This excludes hidden taxes such as child support and health insurance which are at least twenty-five percent of one's income.
Due to these high taxes, many people who are a part of the middle class have to live paycheck to paycheck. In short, some people could care less about the governments's budget. They care about their own budgets, and how they will pay their own bills.
Doubling the standard deduction and other deductions
Individuals have a standard deduction of $6,350 and married couples have a standard deduction of $12,700.
Under Donald Trump's tax plan, these deductions are set to double. This gives the American citizens more non-taxable income. This means more money is put in the middle class pocket. In addition to the doubling of standard deductions, Trump has also decided to keep the homeowner tax break. However, all other deductions will be eliminated, except for charitable donations.
