#特朗普税改
Trump's Tax Reform Frenzy
https://youtu.be/r4On4vUo7R0?si=ahmz_hNl_tM4Aq4k
1. Main commitments and contents
Those with annual income below $150,000 are exempt from federal income tax.
Certain income, such as tips, overtime pay, and Social Security payments, are also tax-exempt.
Abolish estate tax (i.e. no more tax on the transfer of wealth to children after the death of a wealthy individual).
Extend the 2017 tax cuts and try to make them permanent.
The loss of tax revenue is made up through higher tariffs (taxes on foreign imports).
2. Impact on low- and middle-income groups
The tax burden for the middle class and working class with annual income below $150,000 will be significantly reduced in the short term.
Some industries (such as catering and service industries) are exempt from tax on tips, which increases their actual income.
3. Potential risks and problems
Higher tariffs → higher prices: The increased cost of imported goods may be passed on to consumers, leading to a higher cost of living.
Widening deficit: Even with tariff revenue, it will be difficult to fully offset the massive tax cuts, and there is a fear that the federal fiscal deficit will worsen.
Medium- to long-term risks: If the deficit worsens, it may be necessary to cut social benefits (such as medical care and pensions) or increase taxes in the future.
4. Impact on businesses and high-income earners
Maintaining a low corporate tax rate (21%) is beneficial to corporate profits and shareholder returns.
Abolishing inheritance tax would be extremely beneficial to ultra-high net worth families, but it has been criticized for widening the gap between the rich and the poor.
5. Political and social reactions
Supporters: They believe it is a big victory for the middle class and can stimulate consumption and economic growth.
Critics: Point out that short-term benefits come at the expense of long-term burdens, and question whether it is truly beneficial to the general public.
A simple summary
> "Trump's tax reform is a quick way to reduce tax burdens, but it may be a bitter fruit of deficits and rising prices in the long run."
