Please help me to extend this review below. Please find the related article atta
ID: 1145823 • Letter: P
Question
Please help me to extend this review below. Please find the related article attached here https://www.thebalance.com/trump-s-tax-plan-how-it-affects-you-4113968
The focus should be on the content and on what effects it may have to companies and individuals.
The new income tax plan is signed by the US president Donald Trump to increase the income for the country by reducing the defecit budget. This new plan also increases the growth rate of economy for the next 10 years. The new plan is all done for the benefit of the country to not have any economic crisis which the country once faced. This act decreases the economic defecit of the country
The major criticism on this tax is the double deduction of amount as it is really a burden on the families of medium income and small incomes. This double deduction does not effect the large income groups.
Another major criticism is it helps business and high class people rather than individuals and low class people. As the people who are doing business the taxes are permannent but for individuals there are changes. In case of high class people the tax deduction is only 2.2% increase but for middle class and lower class people the increase is 1.7% which is not fair.
The government planning is good for the country but it should also check that individuals should never burden due to this taxes.
Explanation / Answer
The new tax plan helps businesses more than individuals. The tax cuts for businesses is permanent while tax cuts to individuals expire in 2025. The higher-income individuals receive the highest after income benefit. Those in the 95-99% income bracket receive a 2.2% increase, whereas, those in the 20-80% income bracket will receive a 1.7% increase. The tax rate is more regressive, the tax rates are lowered for those in the highest income bracket. The tax rates will not create jobs.
The tax cut will add $448 billion to the deficit over the next 10 years and increase GDP by 1.7%. It would create 339,000 jobs and increase wages by 1.5 percent.