Every American is now celebrating Donald Trump’s victory as the new American President. However, this celebration might soon prove to be short-lived due to Mr. Trump’s new policies. One of these policies seems to be something related to income tax that the President wants to implement. But now even his own Party members are concerned as to whether this decision will even be a good one or not.
What Is Donald Trump Planning Regarding Taxation In the USA?
During his oath ceremony, Donald Trump had promised to increase the taxes of the rich while also enhancing the income of working professionals in order to help them save money cut by taxation. However, he is now planning to restart the Tax Cuts and Jobs Act that the President had passed back in 2017.
For those of you who do not know, this Act was started back in 2017 in order to reduce tax rates for major companies and individuals. The Act also increased tax rates for working families while decreasing property taxes. This Act faced heavy criticism since most working families in the USA were unable to save enough money due to large tax amounts.
However, now the American President not only wants to restart this Act but also make certain changes to it. This involves increasing tax rates for everyone which includes individuals, working families and even businesses, big or small.
This has caused massive outrage from not just the opposition but also from people within the Republican Party. Donald Trump himself stated that he made this decision since the USA is already facing a financial crisis of more than $1.9 trillion while also being at a debt of $36 trillion. The President aims to generate a budget of at least $6 million by enacting his taxation policies.
But most financial experts are stating that even if $6 trillion does get generated, the problem of massive debt will not be resolved. Mr. Trump, in response, has stated that he plans to increase the tariff rates for foreign businesses and imports coming to the USA. He says that this will help to cover any remaining deficit that might still linger on despite the implementation of the tax cuts. This might be helpful for the nation to repay the $36 trillion debt. However, there are still problems here.
And the problems include many nations or at least major foreign companies cutting business ties with the US due to such tariff rates. Most members of the opposition and even Republicans are saying that the companies from BRICS nations might do this due to the 100% tariff rate that they might face. This will surely not help the nation since there is no guarantee that all nations and corporations will agree to the increased tariffs.
The main concern that most Republican members are having is the lingering question of how people will even pay their taxes. The instance of taxes rising will only cause people to revolt or even use illegal practices to not pay tax which will worsen the US’s economic situation. Because of all this, most people are unable to agree to the President’s decisions.
Final Thoughts
Donald Trump has not yet enacted the tariff or taxation regulations that he had promised. In fact, he himself is facing disagreements with his own party members in this case. So the President has decided to do some consultation with his Party members before actually putting any decision in action. However, judging by Trump’s determination to uplift the US’s budget, he might surely enact his decisions. Hence, it is unclear as to how his regulations will fare in the long run.
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