This week I will outline the tax plans of either presidential candidate. I will begin with the current president that in the past four years has done a great deal to change the tax system in America. The following information comes from the president’s current website and is in regards to the Tax Cuts and Jobs Act that was passed in December of 2017. The tax cut was the largest for the corporate world and reduced the rate “from one of the highest in the industrialized world (35%) to 21%” (Promises Kept). The legislation also “provided tax relief for 82% of middle-class families.” The Tax Cuts and Jobs Act also shifted around the individual income tax brackets and rate. The table below from the Tax Policy Center shows how the brackets and rates were changed.
One last important piece on taxes is that the act changed the estate tax. An estate tax is a rate at which the property that one passes on through their estate when they die.
Much of Joe Biden’s tax plan will be put in effect to reverse Trump’s tax plan. Biden’s first main point on his website is to reverse the capital gains tax rate that Trump plans to reduce. The wealthiest people in the world do not make the majority of their money from their income. The top 1% make the vast majority of their money from investments or through their business, this kind of money (or capital) is what the capital tax is in fact taxing. Biden’s plan to increase this rate to 39.6% from its current level of 23.8% is polar opposite from Trump’s plan to reduce it to 15%. Biden also is in favor of “raising the corporate tax rate to 28 percent. Raising the top individual income rate back to 39.6 percent. Asking those making more than $1 million to pay the same rate on investment income that they do on their wages” (Joe Biden).
Before I share my opinion I would like to note that if you disagree with my views I would like to talk about the matter. There is not enough meaningful debate that occurs over politics and it needs to be done. I think from the previous information it is clear that Trump’s plan benefits the rich much more than it does the poor. Now I also think it is important to understand who we are calling “rich”. I think it is fair to say that anyone in the top tax bracket who is making over $500,000 falls into this category. To me, it does not make sense why the rich people in society, who make most of their money on investments, have their investments taxed at the same rate as someone in the third-lowest tax bracket. One of the largest changes that Trump made that I am opposed to was the massive corporate tax cut. The corporate tax rate did stimulate the economy, Trump mentions this often, but at what expense? The tax break has allowed for the 1% to become much more wealthy while the hard-working middle-class individual has not. I think it is sad that during these times, wealthy people are able to become wealthier at a rate higher than most people.
Stay tuned next week for an edition of… Gender and Racial Equality.
Websites:
https://joebiden.com/two-tax-policies/
https://www.taxpolicycenter.org/briefing-book/how-did-tax-cuts-and-jobs-act-change-personal-taxes
https://www.promiseskept.com/achievement/overview/economy-and-jobs/
mea5570 says
I enjoyed reading your blog post because I feel like I learned something new and was informed on issues that are present today. With the election coming up and being able to vote now, I’m glad that this I have this information now. I also like how you put definitions in there just in case someone wasn’t quite sure what you were talking about.
Madison Wilhelm says
I really enjoyed how you were able to talk about the issue in an unbiased and biased manner, I think that’s super important and interesting for a political blog, and will spark the healthy debates you mentioned.