**Impact of Trump’s Proposed Tax Plan on American Incomes**
According to researchers at Wharton, Trump's 2017 tax reform plan had a significant impact on different income groups, particularly benefiting the upper middle class and high earners. Here’s a breakdown of the potential effects under his proposed tax extensions:
### **Income Bracket: $327,000**
**Income Category**: Top Professional Earners
**Income Gain Under Trump**: 2.7% or $9,020
**Wharton Analysis**:
For earners in this income range, the extension of Trump’s 2017 tax cuts would continue to provide considerable benefits. One of the main features was an increase in the standard deduction—doubling from $13,000 to $24,000 for couples and from $6,500 to $12,000 for singles. Additionally, the Trump plan raised the threshold for the Alternative Minimum Tax (AMT), which previously affected 18% of high earners. Post-2017 reforms, less than 1% of earners in this category were impacted by the AMT.
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### **Income Bracket: $1.8 Million**
**Income Category**: Top 1%
**Income Gain Under Trump**: 2.6% or $47,220
**Wharton Analysis**:
For those earning in the top 1%, the proposed extension of the Trump tax cuts would reduce the top marginal tax rate from 39.6% to 37%. This change could translate into a tax cut of nearly $50,000. Furthermore, business owners in this income group would benefit from a 20% deduction on qualified business income, further boosting their take-home earnings, according to Wharton’s analysis.
In summary, the proposed extension of Trump’s 2017 tax plan would continue to deliver tax reductions for both the upper middle class and high-income earners, particularly through lower tax rates and expanded deductions.
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