Donald Trump has revealed a new “once-in-a-generation” tax plan, with huge tax cuts for both corporations and individuals.
The new tax plan was unveiled in Indiana and massively simplifies the current tax system, reducing the number of tax brackets to just three.
“This is a revolutionary change, and the biggest winners will be the everyday American workers as jobs start pouring into our country, as companies start competing for American labor and as wages start going up at levels that you haven’t seen in many years,”
The current tax system has seven brackets, but this will change to just 12, 25 and 35 percent.
The US President insisted that the change in plan would help the ‘normal’ family and would not benefit the “wealthy or well-connected”.
“It’s not good for me, believe me,” he said. “What is good for me is if everything takes off like a rocketship, like it should have for 20 years. That’s good for me.”
Despite these promises, there has been little evidence to show it would be helpful to the average middle-class family. There are suggestions that the richest Americans could tremendously benefit.
In regards to corporations, they would see their top tax rate cut from 35 to 20 percent.
TJ Helmstetter of the group Americans For Tax Fairness expressed concerns this would not benefit the majority of business owners and would increase the wealth of those similar to the President.
“Trump is carving out a special loophole for his own businesses and calling it a small-business tax cut,” he said.
Changes to the current tax system are estimated to add between $3 trillion and $7 trillion to the national debt over the next decade. To pay for this, The Trump administration hopes to cut $5 trillion from spending in areas other than the military. This will lead to cuts in schools, healthcare, and disability insurance.