Taxes. Are you better off under Trump? Chances are that you are not. Unless you earn over 100K per year (at the very least), you are not better off. Trump’s tax plan benefits high wage earners, and penalizes the hard working poor.
Although a lot of focus has been on Biden’s proposed tax hike, the reality is that fewer than 1% of Americans earn over 400K per year. Hardly anyone earns that much, so why is there so much fuss about this? Instead, let’s talk about Biden’s proposed tax cuts for regular people.
Truly, the focus should be on the tax burden of the lowest wage earners, and those who earn amounts near the median income range. For Americans, that median range is about $50K per year. That means that 50% of working Americans earn $50K or more and the other 50% earn $50K or less.
For those in the bottom quintile, which include people making less than $25,000, tax cuts would average $750 in 2022. Those in the next quintile, making between $25,000 and $50,000, would see a tax cut of $790. Those in the middle, earning between $50,000 and $89,000, would see a tax cut of $620, while those making between $89,000 and $160,000 would see a cut of $420.CNBC
Frankly, an extra $750 is a big deal to someone who earns $25K per year. It is not just tax rates that matter here. Under Biden’s plan, lower income people will be eligible for certain tax credits and other benefits that have been elusive during the Trump Administration. Consider the plight of Ciera Dismuke:
With two children and a third on the way, Ciera Dismuke worked five jobs last year while earning just under $15,000. Although the Trump administration often boasts that it doubled the federal child tax credit to $2,000 per child, Ms. Dismuke, like millions of Americans, earned too little to fully qualify. Instead, she got $934 a child, an increase of just $75.The New York Times
Imagine cobbling five different jobs together to make ends meet, but you still are ineligible for the full child tax credit! In general, tax credits that penalize the lowest wage earners are designed to encourage people to work harder. Seriously, does anyone truly believe that someone who works five jobs is not working hard enough?
The bottom line here is that Americans are focused on the tax burden of the fewer than 1% of the population that earns more than $400K per year, but give no thought to why a mother of 3 who earns less than $15k per year should pay any income taxes at all?
Now consider Letha Bradford. Do you realize how many parents cannot afford to watch their own children play high school sports? Often, parents must make a choice between watching their child’s game, or putting enough food on the table for that child to eat.
Letha Bradford, a teacher’s aide, qualified for an equally small increase, despite a household budget so tight that she listens to her son’s high school football games outside the stadium to save the admissions fee.The New York Times
Instead of increasing the child tax credits for people like Bradford and Dismuke, President Trump increased eligibility to parents who earn between $110K and $400K per year? Why? Why do people who earn over $100K per year deserve a tax credit when 35% of American children do not receive the full tax credit because their parents earn too low of an income?
Among those excluded from the full credit are half of Latinos, 53 percent of blacks and 70 percent of children with single mothers. …Because the credit rises with earnings, a single parent with two children has to earn more than $30,000 a year to collect the full amount.The New York Times
When you go to the polls, remember whose interests you re voting for. Is it the rich that need tax relief? Or is it the men and women who are struggling just to put food on the table?