Will Corporate Tax Cuts Increase Wages for the Middle Class?
During Donald Trump’s presidential campaign, one of his promises was to create the biggest tax cut in American history. Among the key selling points was a massive cut on corporate taxes designed to increase wages for middle class Americans. It is one of the biggest reasons Trump was able to win key swing states in last year’s election–including Florida. But can Trump’s tax reform plan deliver what he promised? Some economists are skeptical. One watchdog group, The Tax Policy Centre, carefully evaluated Trump’s and concluded it would mostly benefit the highest earners. However, White House officials maintain President Trump’s tax reform plan should bring huge benefits for those in the middle class. But which side is correct?
Who Benefits From Corporate Tax Cuts?
One of the biggest debates on Capitol Hill is who will benefit the most from corporate tax cuts. Whether your are a Fort Lauderdale tax attorney or the average person working a 9 to 5 job, everybody has a stake.The answers will ultimately affect millions of Americans. There are two clear sides to the debate. According to the Tax Policy Center, corporate tax cuts would help the wealthiest 1 percent of Americans–increasing their income by $130,000 a year. Conversely, middle class Americans would receive just $660. But not everybody agrees. According to President Trump’s Council of Economic Advisors decreasing corporate taxes from 35 percent to 20 percent would boost middle class income from $4,000 to $9,000 for the average household.
Why Tax Reform is Important?
First, it is important to understand what is tax reform and how it works. Tax reform is the process of changing the way taxes are collected, managed and processed by the government. Its purpose is to improve the administration of taxes or to provide social or economic benefits. Regardless of where you stand politically, the latest proposed tax reform bill from the Trump Administration could be the most important in modern American history. Why? Unlike tax proposals created by previous administrations, Trump’s current tax reform bill would radically transform the current tax system with the goal of stimulating economic growth. The White House is hoping the tax reform bill will accomplish the following:
- Simplify the tax code to help more people understand how much they owe.
- End special interest tax breaks.
- Provide significant tax breaks for families across the nation
- Provide tax breaks for small businesses
Will Tax Reform Pass?
Partisan politics will play a major role in whether President Trump’s tax reform bill will pass through Congress. Thus far, the president has struggled to pass any piece of major legislation through both the House of Representatives and the Senate, including several setbacks such as repealing Obamacare.
Are You Struggling with a Complicated Tax Problem? Fort Lauderdale Tax Attorney Ira Zuckerman Can Help
Countless people throughout South Florida are struggling with a variety of tax problems. Whether you are facing an IRS tax audit, a tax lien, bank levy or owe the IRS thousands of dollars in back taxes, it is important to have an experienced and knowledgeable legal professional in your corner. For more than 30 years, Fort Lauderdale tax attorney Ira Zuckerman has utilized a personable and comprehensive approach to help people resolve their IRS issues and go on with their lives. To learn more on how he can help, contact the offices of Zuckerman Law, LLC in Fort Lauderdale and schedule a consultation to discuss your case.