Huge tax cut for Christmas says US President Donald Trump at cabinet meeting
Washington,November 21: Huge tax cut for Christmas, Donald Trump on Tuesday recently stated that the government is going to give American people a huge tax cut for Christmas.
According to reports, while speaking before cabinet meeting President Donald Trump promised that “We’re going to give the American people a huge tax cut for Christmas — hopefully that will be a great, big, beautiful Christmas present.”
Donald Trump spoke as the Tax Policy Centre said that all income group will see reducing the tax reduction on average, under the Senate bill in 2019.
Around 9 per cent of taxpayers would pay higher taxes that year than under current law.
Source says, in 2026 the legislation’s personal tax cuts will expire, so by 2027 that proportion would grow to 50 per cent, hike in which Republicans did to curb budget deficits the bill would create.
Some of the policy centre, a joint operation of the liberal- leaning Urban Institute and Brookings Institution, found that low-earners would generally get smaller tax breaks than higher-income people.
In 2019, people who will make less than USD 25,000 will be getting a tax reduction of USD 50 or 0.3 per cent of their after- tax income.
Middle-income earners would get average cuts of USD 850, while people making at least USD 746,000 would get average cuts of USD 34,000, or 2.2 per cent of income.
The Centre further mentioned that the Senate proposal will generate sufficient economic growth to produce extra revenue of USD 169 billion.
That’s far short of closing the near USD 1.5 trillion in red ink that Congress’ nonpartisan Joint Committee on Taxation has estimated the bill would produce over that period.