Trump Announces Surprise Tax Plan 👛
Tax reform 2.0
At a Nevada rally on Saturday, President Trump pledged to give middle-income earners a 10% tax cut in the coming weeks. In a later interview, he suggested that Republicans may disclose the proposal before the midterms and have Congress vote on its passage after they conclude.
This time for the for middle class
This is Trump’s second go at tax cuts. The first round of successful cuts overhauled tax policy and simplified the filing process. However, the biggest benefits were accrued by the wealthy. This time around Trump is targeting the middle class in what may be a final push to get voters to the polls in November.
Washington Post: The Republican tax cut is a big, fat failure
The left is pessimistic of Trump’s tax proposal. They highlight that Trump’s new promises undermine the GOP since Republicans have tried to distance themselves from the letdown of the previous tax cuts. Articles highlight that the proposal will exacerbate the already increasing federal deficit. These outlets also note that it is impossible to unveil tax cuts before the midterms, given that Congress is out of session until after midterms.
The right is optimistic about a new tax plan that will provide relief to middle-class families. They believe the left is placing too much emphasis on the budgetary aspect of the plan rather than the macroeconomics. Specifically, they point out that the fiscal stimulus will further contribute to the economy’s growth without causing an increase in inflation - a more accurate indicator of overspending.
Will opinions change this time around?
Based on the effects of the first tax overhaul - probably not. A recent Gallup poll shows that 46% of Americans disapprove of the first tax cuts. Additionally, the decoupling of the business cycle - that is, experiencing economic growth that doesn’t counteract rising deficit - may also discourage both the Senate and the House from passing the policy.
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