Trump released his new tax reform plan this week, and Ga. Republicans such as Sen. Johnny Isakson, Sen. David Perdue and Rep. Jody Hice are backing it, claiming that the plan would help middle and working class folks.
Is that true?
Of course not.
While there are tax breaks for some middle class folks, the biggest benefits in the new blueprint go to top earners, including Trump himself.
In Georgia, 74.8 percent of the tax cuts would go to the richest one percent of Georgia residents.
The people in this group make an average of $552,200 next year, and the plan provides them an average tax cut of $83,070, which would increase their income by an average of 4 percent.
Meanwhile, the middle class of Georgia, despite being 20 percent of the population, would receive just 5 percent of the tax cuts that go to Georgia under the framework – the plan would cut their taxes by an average of $260, or increase their income an average of 0.6 percent.
One major provision of Trump’s plan includes slashing the corporate tax rate 35 percent down to 20 percent. The White House argues the cut would allow “small businesses” to create more jobs for and stay in the United States – but again, the break would go to the wealthiest Americans while cutting essential services and programs.
Even if the plan manages to spur corporations into lifting a finger for working folks, the bottom line is that the big tax breaks are not a direct cut for the middle or working class.
In fact, one analysis from the Urban-Brookings Tax Policy Center, shows that not all middle class earners would even receive a tax break, and some might end up paying even more in taxes. What’s more, in 2027, the top one-percent would continue to see a bigger average tax breaks, while most other income groups would see their cut shrink.
This plan isn’t for the “American family,” as top earners and Republican corporatist politicians would have us believe.
It’s been proven time and again throughout history: trickle-down economics will always fail middle and working class people.