Trump, GOP Tax Plan: A Middle Class Tax Increase

Tomorrow President Trump and Congressional Republicans are set to release their tax plan. They have been working in secret, because they don’t want the American people to know the truth: It would actually increase taxes on the middle class, while leaving a massive hole in the deficit.

The Republican tax plan could increase taxes on the middle class.

CBS News: “Let's be clear: Reducing or eliminating the deduction for 401(k) contributions from taxable income could be a tax increase for many middle-income workers, all other things being equal.”

New York Times’ David Leonhardt: “Trump’s plan would not actually cut taxes for many middle-class families. It would raise them.”

New York Times: “Rather than allow workers to continue delaying their tax payments, the Republican leadership wants to collect tax revenue on most new contributions upfront so they can use it to pay for those expensive corporate tax cuts. That’s the equivalent of a middle-class tax increase.”

The Republican tax plan would also explode the deficit.

The Hill: “The study, which relies on the Penn Wharton Budget Model (PWBM), found that the deficit would increase by $1 trillion to $3.5 trillion over the course of the first decade, based on differing estimates of how the final plan will look. By 2040, the plans would cost between $2 trillion and $10.6 trillion.”

Washington Post Editorial Board: “To secure these small economic gains and that tiny revenue bump, Republicans would cut taxes by well over a trillion dollars, leaving a massive hole in the budget. Over time, the negative consequences of higher federal borrowing would be a serious drag on the economy.”

Republicans are working in secret, so the American people cannot see how damaging their proposals would be.

Politico: “Rank-and-file House Republicans are increasingly alarmed by the secrecy shrouding the massive tax bill their party leaders plan to ram through Congress next month. Just days ahead of the legislation’s release, GOP members of the House Ways and Means Committee are still in the dark on numerous details being ironed out by the powerful tax-writing committee’s chairman, Kevin Brady (R-Texas), and his staff.”

USA Today Editorial Board: “Even so, the secrecy with which ideas are being considered shows the lack of mandate that Trump and fellow Republicans have in getting them through Congress.”

Bloomberg: “Republicans are barreling into a lobbying frenzy next week, when House Ways and Means Chairman Kevin Brady plans to unveil a sweeping tax bill to remake the U.S. economy that’s being crafted with rigorous secrecy.”