Revealed: This Is How Much Donald Trump’s Tax Plan Will Really Cost You
Donald Trump has released his tax reform plan to the public and there are some astonishing revelations. Aside from the typical trickle-down economic policies that Republicans still believe in (or purport to believe in), this may be the most insane tax reform bill we’ve seen in a long time, with a legitimate chance to tank our country’s debt and budget. This will ultimately lead to very steep costs for the lower and middle-class Americans it’s supposedly designed to help. Here is a breakdown of what this bill will cost us (and you) as a country.
The health care budget would get slashed across the board
Essentially, this whole tax reform bill is just another way to repeal the Affordable Care Act. The bill itself would cut about $1.7 trillion from the ACA over the next decade. That would disproportionately affect low-income and moderate-income homes. If this budget were to become law, the American Health Care Act (AHCA) would provide the framework for health care expenditures, effectively removing 22-30 million people from health coverage. This would also include a $610 billion cut to Medicaid.
Next: Too poor to eat? Too bad.
Say goodbye to food and education for low-income Americans
Also on the initial chopping block would be programs like supplemental nutritional assistance program (SNAP) which provides food to about 43 million American citizens. Temporary Assistance for Needy Families (TANF), which benefits low-income families with children, would also be cut. The Pell Grant, which provides educational aid for college students, would also be cut under the new framework of the Republican plan. Those cuts could result in about $1.2 trillion from the budget.
Next: Think you’re getting a tax cut? Think again, sucker.
Middle class and working families would see tax hikes
Under the new tax plan, the majority of working class families and a huge chunk of middle class families would see a tax hike. Our current system has seven income tax brackets, and the new system would have three taxed at 12, 25, and 35%. So if you are making almost nothing, your taxes are going to go up by 2%, and if you’re filthy rich your taxes are going to go down by about 5% just on the brackets. There will also be cuts to the child tax credit (CTC), and the earned income tax credit (EITC) totaling $38.9 billion.
Next: Think we’ll end up lowering our debt? The answer may surprise you.
Ultimately, the plan will cost trillions more than it’ll actually save
Over the next 10 years, these tax cuts will ultimately result in anywhere from $6.7 trillion to $8.3 trillion to our tax revenue being cut, along with $3 trillion to $5 trillion in budget cuts. At best, this leaves a $1.7 trillion shortfall. Establishment Republicans believe in something called “trickle down economics,” the idea that if you give tax cuts to the wealthy, it will trickle down to the masses through job growth and purchasing power, and increase revenue for the federal government. That has been proven to never work. That is probably the point of all of these cuts: So that the Republican Party can go after something that they have been angling after since the days of Ronald Reagan.
Next: The age-old debate returns for a new season. Say goodbye to your retirement.
Social security will hit the chopping block too
Social security was probably one of the most ingenious solutions to the struggling economy when it was put in place in the 1930s, as part of Franklin Roosevelt’s New Deal. Basically, this culled the job market and allowed for new jobs to be created at a higher rate. The Republican Party has wanted to get away from this social safety net, citing its more socialist leanings as a financial policy. They also want all the money that is saved in that program to be reinvested into the government, so that the rich can enjoy huge tax breaks. That’s part of the way that they could make up their revenue shortfall after this budget is passed.
Next: Why on earth should we care about the sick and dying while the rich are making more money?
Medicare and Medicaid are in serious danger
“Old, retired, can’t work? Well, screw you, slacker.” At least that’s the dumbed down version of how the Republican tax plan looks at Medicaid. Medicaid is the closest thing we have to a single-payer health care system, and it is used primarily for the disabled, retirees, and people who cannot afford health care on their own. Republicans have built their platform on getting rid of entitlement programs just like these for years, and this would provide them the perfect opportunity to do just that.
Next: Heaven forbid anyone is smart enough to figure out what they’re doing, and with cuts to education, they never will be.
Jeopardizes education funding
Education is already in serious jeopardy with Betsy DeVos at the helm in the current administration. In the current proposal, they already want to eliminate a lot of funding for the Pell Grant. Add to that, a serious budget shortfall, education is on the chopping block in future budget debates.
What all these cuts do is take from the poor and give to the rich. Even though Trump and other Republicans tout his tax plan as a windfall to the middle class, but the only people who will be winning are the super wealthy and, to quote our president, “there’s going to be so much winning, you’re gonna get sick of it.”
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