Article Summary –
Former President Donald Trump has proposed to make expiring provisions of his 2017 tax law permanent and introduce major new tax cuts for the wealthiest individuals and corporations. However, his previous tax cuts have resulted in increased national debt without fulfilling pledges to cut tax rates for middle-class families and eliminate national debt. The nonpartisan Congressional Budget Office estimates that making the individual tax provisions permanent would add another $4.6 trillion to the national debt over a decade.
Trump Plans to Extend Tax Cuts and Introduce New Ones
Former President Donald Trump has been vocal about his intentions to make the expiring provisions of his 2017 tax law permanent if reelected. On May 11, he revealed plans for a significant new tax cut favoring wealthy individuals and corporations.
Contradictory Claims About Tax Cuts and Revenue
Although Trump has been asserting his plan to provide a major tax cut for all classes, he has not released a concrete proposal. He has, however, claimed that the Tax Cuts and Jobs Act of 2017 increased federal income. Data from the U.S. Treasury Department contradicts this, showing a drop in total federal revenue between 2017 and 2018.
Promises and Reality
In 2016, Trump promised to significantly cut middle-class tax rates and eliminate national debt. Instead, he increased the national debt by approximately $7.8 trillion, while the tax law passed under his administration favoured wealthy individuals and big businesses.
Impact of Tax Cuts on National Debt
Experts have predicted that the 2017 tax law would add between $1 trillion and $2 trillion to the national debt. A recent study also revealed that the law’s corporate tax cuts added $100 billion annually to the budget deficit.
Efforts to Make Tax Cuts Permanent
Despite the financial implications, Trump and his GOP allies continue to push for the implementation of permanent individual tax provisions. However, the Congressional Budget Office estimates that this would add a further $4.6 trillion to the national debt over ten years.
Further Tax Cuts May Increase Government Debt
Trump’s proposal for additional tax cuts for the rich could further increase the government’s debt and result in higher interest payments on borrowed money.
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