“If you’re single and earn less than $25,000 per year, or married and jointly, and jointly earn less than $50,000 – so very important – if you’re single and make less than $25,000 or married and jointly earn less than $50,000, you’ll not pay any income tax. Nothing.” – Donald Trump
September 29, 2015
@2:00 – Less than $25,000 or jointly less than $50,000, pay no taxes
February 3, 2017
In January President Trump took office and almost immediately lowered the benefits of his “middle class” tax plan. Suddenly, the $25,000 and $50,000 standard deductions promised on the campaign were slashed 40% to just $30,000 and $15,000.
The tax exemption would now only benefit folks who earned no more than the minimum wage. Every penny above that would be taxed at $12% (rather than the current 10%).
This major tax hike, approved by Trump’s new economic advisors – Goldman Sachs grads and other financiers – authorized a tax of $2,400 for the average American family ($50,000 earnings a year), versus the original plan of zero tax, and added $5,000 to $6,600 to the tax bill of higher earners..
There is no explanation from the White house about the broken campaign promise.
September 27, 2017
Under this framework, the first $12,000 of income earned by a single individual will be tax free, and a married couple won’t pay a dime in taxes on their first $24,000 of income. So, a married couple — up to $24,000 — can spend their money on their family, on their children, on what they have to do. So much better. – Mr. Donald Trump
This latest plan stops the “no tax promise” from helping the average American family, and only helps those facing the poverty line. The family earning $50,000 will not be spared taxes, but instead face a tax bill of $3,120, versus the promised zero. A single person would pay half that.
Under the newest plan no personal deductions will be allowed, not even for minor children or the elderly. Most tax deductions, including home real estate taxes and medical expenses will be eliminated. Even the upper middle class will not go unscathed – The Tax Policy Center says that roughly 30 percent of all Americans earning between $50,000 and $150,000 will pay more to Uncle Sam than under today’s tax rate, let alone the original, promised plan.
However, Mr. Trump and his GOP banking wing have many trillions of dollars of goodies for the elite in their tax plan.
- Removing the Alternative Minimum Tax (ATM) will save millionaires, so many millions of dollars. (Mr. Trump’s most recently available tax return shows income tax paid of $38 million. Of that total, most of it, $31 million, was ATM.)
- Eliminating the Inheritance tax for estates more than $11 million will be very helpful to the very wealthy. (Mr. Trump’s children will save $4 billion in taxes on his estimated fortune, and eliminate about $46 billion in future Walton family estate taxes, plus some $30 billion for Jeff Bezos, Bill Gates or Warren Buffett, indeed anyone with vast wealth.)
- Cutting corporate taxes in half.
- Allowing companies to move headquarters overseas to avoid any income taxes on earnings in the U.S.
- Forgiving $2 trillion or more in owed business income taxes held overseas.
- Charging “small” business owners a 15% tax, while workers pay 25% or more.
- Reducing IRS staff and cutting high income audits.
We have seen a Trump campaign promise for no taxes for couples earning $50,000, fall to $30,000 after the election, and then to $24,000 this past month. Meanwhile trillions of dollars will be added to the national debt by historic tax changes to benefit the very rich.
The tragic outcome will be next year – after the mid-term elections – when the GOP will cry “huge national debt”, and Americans will be devastated by the establishment politicians cutting Medicare, Social Security, Medicaid, college loans, education, food stamps, and public transportation. Swamp denizens will then emerge to urge sale of our public assets to private firms in return for tolls and admission fees.
In short, Mr. Trump’s bevy of establishment lackeys will advise him to break more campaign promises, and the President will then try to convince us that the “little people” must sacrifice more to prop up the wealthy class. It all trickles down?
This “cut taxes for the rich, cut benefits for average Americans” movement is the handiwork of extremists like the Koch brothers, whose father founded the infamous John Birch Society.
Contributing to the conclusion that the White House has been colluding with the Birch wing of the party was the August 19 keynote speaker address by VP Mike Pence to the Koch annual symposium. Among other items, the session set goals for the soon-to-be-announced tax plan, including more taxes for the middle class..
The Kochs spend hundreds of millions to influence elections on behalf of global business and to defy nationalism. They favor unlimited illegal immigration because it lowers wages, and oppose any government regulation of any industry. At the same time they align themselves with radical social groups, hoping Americans will be distracted from economic self interest to obsess over very emotional, complicated divisive causes
One thing is sure. Trump will learn in 2020 that you can’t get away with breaking your promises on taxes. Mr. George H. W. Bush and others will attest that the American people have a long memory, especially when it comes to their taxes.
Personal note: In the process of examining the ever-dwindling benefits of the President’s tax plan, the Internet, media sites and several news channels were scoured for a week. The bait and switch appears to have never been reported. A Google search of “standard deduction cut from $50,000 to $24,000” showed nothing of value. Sites as diverse as Huff Post and Breitbart News also appear to have ignored this issue. A conspiracy of silence? Or is it just that nobody at the top, controlling the mass media, cares much about the fate of the working class?