The election is over, now the consequences begin. Know a friend or family member who voted for Trump? Share this roundup summarizing experts with them. At least they should emotionally prepare themselves for what’s coming.
First up, this piece from Laura Sanders at The Wall Street Journal pointing out that Trump’s tax plan will give some tax cuts to average Americans and a whole lot of tax cuts to the richest Americans while ballooning the debt:
[W]hile most people would have lower tax bills, higher earners would save much more. According to the Tax Policy Center, nearly half the benefits from the Trump plan would go to the top 1% of households—those earning more than about $700,000. It could also increase taxes on many single parents and two-parent families with more than two children, although the Trump campaign said it would make sure this didn’t happen.
Deductions and credits: All three plans would make it harder for individuals to benefit from specific tax deductions, for several reasons. One is that each plan raises the amount of the “standard” deduction, which gives taxpayers less need to break out deductions for mortgage interest, charitable gifts, state taxes and the like on Schedule A.
Now, your federal tax bill may be smaller, but as you’ll see later in the roundup, your state, local and municipal taxes will likely go up, up and way….On the federal tax plan, though, to put it into perspective for the average, hard-working American struggling to make ends meet, Kurt Badenhausen at Forbes looks at how rich athletes would fare under Trump and Republican tax plans:
LeBron James, a vocal Clinton supporter, stands to save $2.3 million per year on his $31 million salary from the new three-year, $99.9 million contract he signed this summer with the Cleveland Cavaliers.[...] Forbes estimates that James made $54 million a year in endorsements off the court between June 2015 and June 2016 as part of our annual look at the world’s highest-paid athletes (James ranked third overall at $77 million due to a lower salary from the Cavs during the time period). His tax savings on these deals will save him $13.8 million annually. [...]
All told, if President-Elect Trump’s tax proposal is passed by a friendly and motivated Congress, LeBron James stands to save $15.16 million annually in federal income taxes, without considering the tax savings on investment income.
One can only imagine the rewards elites like celebrities, hedge fund managers and other one-percenters will reap from the Trump/Republican tax plan (not surprising, since these types of elites have been Trump’s friends). And speaking of taxes, all that talk of “draining the swamp” and heralding in an era of transparency was, well, predictably just “talk”. Lynnley Browning at Bloomberg reports:
By tradition, sitting presidents release their returns annually, but there’s no law requiring the president to do so. And there’s no indication that Trump -- fresh from an unorthodox campaign -- plans to embrace that tradition.