Among the many tax moves President Donald Trump is making, cutting them out for people making less than $150,000 a year may be the biggest yet.
According to a report by Newsweek, President Trump said: “America’s gonna be very rich again and its gonna happen very quickly. It’s time for the United States to return to the system that made us richer and more powerful than ever before.”
He then added: “Instead of taxing our citizens to enrich foreign nations we should be tariffing and taxing foreign nations to enrich our citizens. Does that make sense? Right?”
Sounds a little bit crazy, but let’s break this down:
Trump: No Taxes If You Make Less Than $150K
Think of it like a math equation. Say you need $1000 in taxes. $800 0f the taxes come from citizens and $200 from taxing other countries (tariffs). Trump plans on more of a: $200 from citizens, $800 from other nations deal. This is definitely oversimplified, but the point remains, we leverage the industry and commerce influence of the US to limit taxes on citizens.
A recent Forbes article, the author argues that these tax cuts will include cutting out payroll taxes. The article states: “Social Security and Medicare are funded almost entirely through payroll taxes. If you eliminate them for the vast majority of workers, you’re not reforming these programs—you’re eliminating them entirely.”
Whatever the case may be, the push towards lower taxes will likely do at least two things: free up American citizen wealth, and reduce government funding.
Read More: Trump, Tariffs, and The Effects On Community Banking
The Banker Report 
Leave a comment