During the campaign period, Republican Candidate now US President-Elect Donald Trump has been very clear on his tax plans. He promised to cut taxes on the middle class and increase taxes on the wealthier and higher class.
But according to experts, as reported by NPR, Trump's tax plan actually does the opposite of his press releases. If further studied, it can actually be a burden to the middle-class.
According to New York University Law Professor Lily Batchelder, this plan will most likely boost taxes for many American families. And those who will suffer most are single-parent families, mainly because of the cancellation of personal exemptions and head of the family status.
As broken down by Batchelder, who is also a visiting colleague at the Tax Policy Center, a single parent who earns approximately $75, 000 with no child care costs would actually face around $2,440 tax increase. This is considering the single parent has two school-aged children.
Meanwhile, a single parent earning $50,000 with three schoolers and also no child costs would face $1,188 tax increase, approximately. While married couples with $50,000 income, with two children, and no child care costs are also subject to an estimate of $150 tax boost.
But according to the president-elect's official website donaldjtrump, these middle class families will experience the biggest tax cuts they could ever imagine. Under the Trump Tax Plan, married could who earns $50,000 annually with two kids and spends $8,000 in child care will receive 35 percent cut.
Even the couple who earns $75,000 with two kids and higher child care expenses of $10,000 will get a 30 percent cut. Now those are really huge digits if you're going to think of it.
And according to Batchelder, these calculations on Trump's official website are kind of misleading. Instead of focusing on tax rate reduction, it should mainly focus on how much money will be left after tax deductions.
As previously reported by Jobs & Hire, Trump's victory shocked the world. But surprisingly, as opposed to predictions, the stock market didn't go down.