One of the distinctive features of Donald Trump’s presidential campaign was the promise of widespread tax reduction for the rich, workers, and companies.
Now the Republicans in Congress are working to find out which of these cuts to propose the law. To pay for the cuts, they started watching some goals to raise money. Among them: reducing the advantages for single mothers and poor people who count on state medical care.
The sentences are included in menu The parameters of tax reduction and expenses were extended this month by Republicans of the House of Representatives. Whether the Republicans will be accepted or not any of the ideas. Some of the potential goals are popular tax benefits and reductions can be politically insidious. And tax reduction for wealthy can risk damage to the populist image that Trump has grown.
For the Ultravodovo, the document is floating, which eliminates the federal real estate tax, approximately $ 370 billion in profit for the decade. Tax that charges a Percentage of cost Once they die, it stands only for the estates worth more than $ 14 million.
Among those few Americans who have been really affected Estimates of the Tax Policy Center Analytical Center. (Many superhuman people are already largely avoiding tax. Over the years lawyers and accountants have developed ways Pass the happiness free tax heirsoften using Complex trust structuresAs reported propublica before.)
Another proposal is aimed at reducing the highest tax paid by corporations by almost a third.
Trump promised such an incision during the campaign. But Vice President J. D. Vens came out against it before Trump chose it as his partner. “We are now in accordance with the OECD,” he said in an interview last year, citing the organization on economic cooperation and development, groups of 38 wealthy developed countries. “I don’t think we need to reduce the corporate tax rate anymore.”
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In the first term Trump, he reduced the highest corporate rate from 35% to 21%, where he now, taking the US from a high rate compared to other OECD countries, is approximately on average. The proposed reduction to 15% will rely on the US among the lowest countries.
To pay for new tax reductions, the proposal of the House of Representatives floats a number of potential major repairs of state programs. One of the main accents is the reduction of Medicaid, a healthcare program for low -income people. Medicaid expansion has become the key principle of the Affordable Failure Act adopted by President Barack Obama. Many Republican governors initially decided not to use new federal subsidies to expand the program. In the implicit years, several states canceled the course, and the program has expanded the number of people enrolled in Medicaid more than more than more than 20 millionAs of last year.
The deep reductions of the program in the document float in the document, included in the States reduced compensation. States need to “raise new revenues or reduce the costs on Medicaid, eliminating the coating for some people, covering less services and (or) bet paid by doctors, hospitals and houses of the elderly,” An Anne reports Analysis KffOrganization of health policy.
Trump has been controversial over the years in his Medicaid position. He tried to cut Program in the first term. But he also made statements for the protection of it for years.
Most recently as an event of the company 2023, Promised Trump that “we’re not going to play with Medicare, Medicaid”. But it is unclear whether there was a comment: Keeping Medicare, a program that covers medical care for the elderly, was the focus of Trump, supporting Medicaid. For example, the official GOP platform deployed Trump Silent about Medicaid. In some statements during the company last year, Trump appeared approve cuts After the “rights” after the interviewer asked about Medicare, Medicaid and Social Security.
Other proposals eliminate tax benefits for families with children.
Parents are currently able to get a $ 2100 tax loan for childcare costs. The Republican Plan of the House of Representatives floats the elimination of this break. According to the reduction, it will save $ 55 billion in ten years.
In particular, Vens had Promised economic policy This would reduce his parents’ load. “This is the task of our government to facilitate young moms and dads so they can have children,” he said last week. (He held a company on proposal more than twice as much as a tax loan.)
Another proposal on the options list is taking a goal to raise children independently. The provision would eliminate the status of the “Household Head” applications to raise almost $ 200 billion more taxes over the decade from single parents and other adults who have cared for dependents on their own.
The status of the “head of household” was created in the 1950s under the justification that single parents should have a lighter tax burden. Eliminating it will affect millions of Americans, mostly women. .
Democrats criticized the proposals as a gift wealthy at the expense of the working class. “Republicans are preparing for a class war against everyday families in America,” Senator Ron Wider said in a statement.
The White House press secretary did not answer the questions on the specifics of the House GOP document, but said in an email that “this is active negotiations and processing that the president and his team work productively with Congress. His visit to the retreat house (on Monday) was A sign that he wants to prioritize the unity and a good deal for the Americans who fulfills the promises of his company. “
The press -secretary of the House of Representatives’ budget committee refused to answer specific questions, but said: “This is the menu options for accounting the commissions that should consider when members move through the reconciliation process.”
Some of the proposals fulfill Trump’s promises aimed at the work class.
The document includes a plan to resolve income taxes (but maintaining taxes on wages) at the parades worth $ 106 billion for ten years. The proposal is one Trump that campaigning in Las Vegas to receive support from the huge contingent of the city. Trump’s democratic opponent, former Vice President Kamal Harris, later pledged to do the same. Economists criticized this idea as the one that unfairly benefits one group of working class employees over others who pay the same but work in other fields that do not deal.
Another promise of Trump, included in the document, stops taxes on overtime, at $ 750 billion in ten years. This proposal is also criticized by tax experts as an ineffective way to provide assistance for low payment workers, which are eligible for overtime as they pay annual and perform repetitive tasks. According to critics, this will invite games and further complicate tax reporting by creating new requirements for the clock that worked as a taxpayer.
One of the biggest proposals for raising new revenues in the document of the Republican House has reached a tax benefit, which led Americans with high income: eliminating the calculation percentage. The document estimates the savings of $ 1 trillion over 10 years, turning off the break. Out of the complex interaction of different features of the tax code, 60% of the cost of this deduction flows to Americans who earn more than $ 200,000 a year, according to Tax Fund.
Evasion from calculating percentage will have uneven geographical impact: analysis have been found Tax benefits are more valuable to Americans in the state democratic states such as California, Massachusetts and New Jersey.
Pratheek Rebala has made research.
Do you have information about tax offers we need to know? Robert Faculty can be e -mail at the address (e -mail is protected) and signal or WhatsApp at 213-271-7217. Justin Elliott can be e -mail via email (e -mail is protected) Either signal or WhatsApp at 774-826-6240.
