President Trump promised to make America great again, and that is what he is trying to do. This is especially evident in his latest tax reform plan.
According to Washington Free Beacon, the President’s tax reform plan, The Unified Framework, will be particularly helpful to struggling seniors. Economists who studied the plan stated, “All generations benefit from the policy. The old benefit slightly from higher rates of return on their investment, and the young from higher wages.”
Boston University economists who studied the tax framework determined that it could increase GDP as high as 5 percent, and wages as high as 7 percent. The tax plan would provide “small increases in lifetime welfare to current retirees and moderate ones to workers and future generations.”
The tax plan will enable better returns on retirement money, which is especially helpful to seniors who struggle to survive on meager social security and retirement. Economics estimated an increase in US capital stock of 12 or 20 percent, saying the reform is “projected to have significant positive macroeconomic effects” due to the reduced corporate tax rate that makes investment more attractive.
The Council of Economic Advisers (CEA) also determined that, by reducing the corporate tax rate from 35 to 20 percent, average household income could increase “by, very conservatively, $4,000 annually.”
This is a drastic contrast to Former President Obama’s policies, which consistently hurt seniors — inflicting increases in taxes and fees, thus limiting their access to health care.
The Heritage Foundation noted that Obamacare contained “$716 billion in Medicare payment reductions from 2013 to 2022,” a change that is predicted to bankrupt an estimated 15 percent of “hospitals, skilled nursing facilities, and home health agencies” by 2019. Such an impact would greatly inhibit seniors’ access to care.
Americans for Tax Reform explained that five of 20 tax increases mandated by Obamacare hurt seniors the most. Among those include taxes on medical devices, reduced medical deductions, increased penalties on both individual mandates and the high-cost Cadillac plan, and an increased dividends tax from 15 percent to 39.6 percent.
The studies on President Trump’s tax proposal haven’t calculated the effects of his proposed personal income tax cuts. Fortune noted that middle class incomes could “benefit substantially from lower tax rates and a near doubling of the standard deduction to $12,000 for individuals and $24,000 for families.” Small business owners that report business income on their personal returns will see their tax rate fall from 39.6 percent to 25 percent.
Kevin Hassett, head of the CEA, says there aren’t enough details to make projections of those tax cuts yet.
Despite the projected relief provided to seniors under President Trump’s tax plan, the media still finds ways to criticize it. Some, such as CBS, have claimed that the plan only benefits the rich, touting a poll in which 58 percent of Americans believe the tax plan “favors the wealthy.”
The president is helping seniors. Do you agree with him?
President Trump expressed confidence for getting his tax reform plan passed in Congress. In an interview with Maria Bartiromo on Fox News, he said, “I think we’re going to get our taxes,” calling it the “biggest cuts ever in the history of this country” in terms of taxes.
However, President Trump has one big hurdle before his tax plan can reach Congress: the 2018 budget. Both chambers must pass a budget plan before advancing a tax plan, a move which will prove challenging as Democrats and anti-Trump GOP members have proven to be detrimental to the president’s plans.