Thursday, October 12, 2017

Breitbart Breaks with Trump Says Tax Plan Won't Benefit Truckers

"There’s very little in the framework...that would directly benefit most truckers," Breitbart's John Carney writes, saying that  President Trump's plan would raise taxes for a family making the median income for truck drivers by about $200 a year.

In front of a crowd of truck drivers in Pensylvania, Trump said
Wednesday night that his tax reform plan would be "rocket fuel" for America's economy.

"You're going to make more money. You're going to do better than ever before. And we truly admire you. You are our heroes, believe me," he added. "You are our heroes."

But Carney correctly notes that Trump's plan to eliminate personal exemptions will reduce the basic income exemptions available for middle-class families:
The tax framework released by the Trump administration last week nearly doubles the standard exemption from $12,700 for a married couple to $24,000. But it also would eliminate the personal exemption of $4,050 per person, which for a family of four amounts to $16,200. So for a married couple with two children, their basic deductions under current law would be $28,900. Which means that the Trump plan actually lowers the basic deductions available for middle-class families.
In other words, under the Trump plan more of a family’s income would be subject to income tax than under current law. So even if their rates fall, they could still wind up paying more in taxes
Trump told truckers that the average family would save about $4,000 under his tax plan.

“My Council of Economic Advisors estimates that this change, along with a lower rate, would likely give the typical American household a $4,000 pay raise," Trump said.

There is still some hope for truckers depending upon details not yet released. Most specifically, the child care deduction must be monitored. Carney again:
Any tax cut for this driver’s family would depend on an increase in the child tax credit, something the framework called for but did not specify. Currently, the couple could deduct $1000 per child. If the tax credit were increased by only 10 percent, they would see no tax cut at all. If it increased by less, they would get a tax hike. If it is increased by more than 10 percent, they will get a tax cut.

(ht The Hill)

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