How To Prepare For Trump’s Middle Class Tax Hike
Individuals who make $112,500 – $190,150 will see their federal marginal income tax rate go up by 5%, from 28% to 33%!
I’m not sure why Trump wants to raise taxes on the middle class. It’s good to hear he plans to abolish the Alternative Minimum Tax (AMT) and the 3.8% Net Investment Income tax on individuals/couples who make more than $200,000/$250,000. But those benefits accrue mostly to individuals who make more than $190,150.
It’s nice Trump plans to nix the estate tax (death tax) for individuals / married couples with more than $5.45M / $10.9M. Getting taxed again after you already paid taxes on your wealth sounds like robbery. But given most of us don’t plan to die within 4-8 years, any changes to the death tax don’t really matter because they’ll surely be changed again.
A 5% tax hike on the middle class and a 6.4% tax decrease on the top 1% income earners who make over $415,050 is not helping the majority of people keep their hard earned money. In fact, it’s estimated that the top 1% will enjoy ~50% of all the tax benefits.