Trump's new tax plan benefits more the wealthy!
On Wednesday, the Trump administration outlined a new tax regime that will provide a huge windfall for America's wealthiest. However the new plan will not directly benefit lower earners and the middle-classes benefits will be modest at best.
The focus of the new tax structure is to reduce taxation on business income which will benefit the small share of the population that owns the vast majority of corporate equity. Trump said that the cuts would increase investment and spur growth, creating greater prosperity, however experts were quick to highlight that the economy was already in a growth phase and the upside to the new plans are limited.
Included was the plan to eliminate estate tax, a massive advantage for the super-wealthy as well as a minimum tax, which will act as a safety net and inventive to prevent tax avoidance. Trump has repeatedly mentioned that the plan would reduce taxes for middle-class families, but so far limited details have been made public to validate that claim. I's likely some households could benefit from tax cuts and others could end up paying more.
For more market insights, please visit: http://www.yadix.com/forex-trading-community/economic-calendar/
No comments:
Post a Comment