Categories: Featured News

Trump’s Economic Plan Would Raise Taxes On The Poor And Middle Class

Last updated on May 25th, 2024 at 07:50 pm

A new study found that Donald Trump’s economic plan would raise taxes on poor and middle-class Americans by $1,700 a person each year.

A study of Trump’s tariff plan by the Peterson Institute For International Economics found:

Presidential candidate Donald Trump is proposing to reduce US reliance on income taxes while increasing our reliance on import tariffs. He proposes extending expiring tax cuts from 2017 and has also suggested possible new rounds of tax cuts. At the same time, he has proposed a ten percent “across- the -board” tariff and a 60 percent or more tariff on imports from China.

Together, these policy steps would amount to regressive tax cuts, only partially paid for by regressive tax increases. The tariffs would reduce after-tax incomes by 3.5 percent for those in the bottom half of the income distribution and cost a typical household in the middle of the income distribution about $1,700 in increased taxes each year. If executed, these steps would increase the distortions and burdens created by the rounds of tariffs levied during the first Trump administration (and sustained during the Biden administration), while inflicting massive collateral damage on the US economy.

Trump consistently claims that his tariff plan would not harm the economy because he distorts the way that tariffs work. Trump claims that the nation who is the tariff is imposed upon bears the cost, when the reality is that tariffs increase prices for American consumers.

If Trump won the election and implemented his tariff plan, it would increase the tax burden on poor and middle-class families. The ten percent tax would not be paid by China but by American consumers. At a time when inflation is a lingering issue, Trump has put forward a plan that would send the US economy spiraling into a recession.

Someone has to pay for Trump’s planned massive tax cut for the wealthy, and it is going to be the poor and middle class who will get stuck with the bill.

 

Jason Easley

Jason is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements. Awards and  Professional Memberships Member of the Society of Professional Journalists and The American Political Science Association

Recent Posts

Clarence Thomas Corruption Bombshell: Senate Finds 3 New Undisclosed Trips

The Senate Judiciary Committee Democrats have uncovered three new trips that Justice Clarence Thomas received…

2 hours ago

Weak And Declining Trump Holds Less Than 5 Minute Fake Press Conference With 0 Questions

A sign of Trump's ongoing decline was that he held an event billed as a…

5 hours ago

Former 1/6 Committee Chair Tells Trump To Go Home And Wait For His Sentencing

Former 1/6 Committee Chair Rep. Bennie Thompson (D-MS) told Trump to go back to Mar-a-Lago…

6 hours ago

Biden Releases New Devastating Swing State Ad Against Insurrectionist In Chief Trump

The Biden campaign responded to Trump returning to the Capitol by reminding voters in swing…

7 hours ago

Rep. Jasmine Crockett Blasts Republicans For Welcoming Trump Back To The Capitol He Attacked

Rep. Jasmine Crockett (D-TX) called out Republicans in Congress for inviting Trump back to the…

8 hours ago

Joe Biden Is Leading The Biggest US Small Business Boom In 25 Years

The Small Business Administration (SBA) announced that 18.1 million new business applications have been filed…

1 day ago