Trump’s tax plan: massive cuts for the 1% will usher ‘era of dynastic wealth’

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More than eight million low-income and single-parent families will face sharp tax increases under Donald Trump exacerbating income inequality, experts warn

President Donald Trump is set to give Americas richest 1% an average annual tax cut of $214,000 when he takes office, while more than eight million families with children are expected to suffer financially under his proposed tax plan.

On the eve of the election, Trump promised to massively cut taxes for the middle class, the forgotten people, the forgotten men and women of this country, who built our country. But independent expert analyses of Trumps tax plan show that Americas millionaire and billionaire class will win big at the expense of struggling low- and middle-income people, who turned out in large numbers to help the real estate billionaire win the election.

Experts warn that Trumps tax plan will exacerbate Americas already chronic income inequality and herald in a new era of dynastic wealth.

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The Trump tax plan is heavily, heavily, skewed to the most wealthy, who will receive huge savings, said Lily Batchelder, a law professor and tax expert at New York University. At the same time, millions of low-income families particularly single-parent households will face an increase.

Batchelder, who wrote an academic paper on Trumps tax plan published by the Urban-Brookings Tax Policy Center, said that the president-elects plan significantly raises taxes for at least 8.5 million families, with especially large tax increases for working single parents. More than 26m individuals live in those families.

According to Batchelders research Trumps tax changes taken at their most conservative could leave just over half of Americas nearly 11m single-parent households facing an increased tax burden. This figure rises to 61% or 7m households if the analysis is run on reasonable assumptions that the changes Trump has suggested go ahead.

Single-parent families would suffer the most because Trump would lower the minimum of tax-free earnings to $15,000 per adult no matter how many children in the household. Under current law the threshold is $17,400 for single-parent families with one child and $24,750 for a couple with one child, and the threshold increases by $4,050 for each additional child.

Read more: www.theguardian.com

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