Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 6 months ago

How was Trump doubling the standard deduction a "tax cut only for the rich" like liberals claim?

16 Answers

Relevance
  • Amy
    Lv 7
    6 months ago

    Merging the personal exemption into the standard deduction didn't help anybody except dependents who earned over $6300.

    But that's not the tax cut that matters. And the changes to the personal income tax only last 8 years anyway (less for the child credit) .

    The permanent tax cut for the rich was a deduction in corporate taxes. How many non-rich people do you know who own a corporation with more than 100 employees?

    (Small businesses don't count - they already had enough tax breaks to pay at a low rate)

    • Amy
      Lv 7
      5 months agoReport

      I said that the STANDARD DEDUCTION cut didn't matter. Other changes to personal tax - especially the child credit - did help many people. But not as much as the corporate tax helped the rich, and not permanently, and because they're funded by borrowing we're going to pay double for them eventually.

  • 6 months ago

    The double standard deduction is not a tax cut for the rich. The tax cut for the rich comes in the non elimination of many deductions that only rich people really qualify for, and also in that with the doubled SD, many non rich people can no longer deduct mortgage interest, etc and effectively lose money. Also in the changing of the tax brackets. That saved rich people money.

  • 6 months ago

    Trump didn't double anything. Congress makes the laws. The president can advocate for things but can't put them into law until Congress passes them.

    The standard deduction wasn't quite doubled, but the child tax credit was doubled, and for all families with children that qualify for this credit, with the exception of a very small number of upper middle class earners, that doubled child tax credit, combined with the higher standard deduction, more than made up for the elimination of the personal exemptions.

    The claim is that this didn't help the 'poor'. Well, of course it's not going to help those who are already paying no income tax. A majority of the middle class was helped.

    Except that it DID help the 'poor'. For the first time, a portion of the unused child tax credit is refundable. Previously, only the earned income credit gave people who owed no income tax money back - a wealth transfer and nothing more. Now, if some of the child tax credit takes your tax to zero, some of the credit you didn't use can be 'refunded' to you.

    • curtisports2
      Lv 7
      6 months agoReport

      I said nothing about the additional child tax credit, which did not apply to most taxpayers. The regular child tax credit was NOT always refundable.

  • 6 months ago

    He never did any such thing. The liberals are lying to advance their own agenda.

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • Anonymous
    6 months ago

    ELECTED Democrats ALWAYS claim any changes to tax law supported by Republicans only benefits the rich. The actual effects of the plan are irrelevant to their making that claim.

    The same people would say the EXACT SAME change was a benefit to the middle class if supported by Democrats.

    Update to comment: RICK, you just demonstrated my point.

    • RICK
      Lv 7
      6 months agoReport

      Any change by Republicans to the tax plans does benefit the rich and hurts the middle and lower class
      Always has and aslways will, cutting personal income taxes never has and never will help the economy
      Corporate taxes are another matter

  • 6 months ago

    Liberals don't claim that. Doubling the standard deductions while doing away with exemptions is not what made the bill a tax cut for the rich. It was other goodies.

  • Anonymous
    6 months ago

    Eliminating the personal exemptions clobbered a good chunk of doubling the standard deduction. One line adds, the other subtracts.

    And he limited the SALT deduction - which hurts a lot of middle income taxpayers.

    Look at the numbers: the tax bill benefited the rich, overwhelmingly.

    EDIT:

    > (Norman) Reducing the SALT deduction hurts landlords much more than "middle income" tax payers

    It hurts homeowners. Business entities that own income property (including LLCs) get the full deduction as a business expense. The SALT limit hurts owner-occupied homeowners.

    • In high tax states all the middle income home owners got killed by the removal of the SALT deduction. These people are not rich by any measure.

  • Anonymous
    6 months ago

    Im a democrat, but I am bringing home mucho cash thanks to trump.

    we vote trump next time. don't want this to end.

  • Anonymous
    6 months ago

    It wasn't. The rich typically itemize. They also generally had massive state tax deductions in the past that were limited to only 10k in 2018. Thus the rich got shafted by the Trump tax plan.

    Not what the liberals will tell you however.

  • Anonymous
    6 months ago

    The left uses catch phrases to fool their base

    • John6 months agoReport

      Yeah, phrases like "Make America Great Again", and "Lock her up". Right? Oh, wait a second.

Still have questions? Get answers by asking now.