Why have I been hearing all year that the Trump tax cuts hurt the middle class?

GilbertJobs

Hello Tax Geeks,

I have heard that the Trump tax-cuts only benefit the super wealthy and hurt the middle class enough times throughout the year that I just accepted it. But today I was just looking over the tax brackets for this year to estimate what I might owe and then comparing them to last year's; the rates are decidedly better, the bracket rate kicks in at a higher value, and the standard deduction is double (though the exemptions are gone).

For simplicity, let's say taxable income for a married couple, filing jointly is $100,000

BoGoF

This is a UK site.

Keep_pedalling

Well you have not been hearing it here, this is a UK site and this board is for questions about saving UK tax.

00ec25

America does not have a middle class system, it has a wealth system

class is about breeding, not wealth

cloud_dog

GilbertJobs wrote: »

Hello Tax Geeks,

I have heard that the Trump tax-cuts only benefit the super wealthy and hurt the middle class enough times throughout the year that I just accepted it. But today I was just looking over the tax brackets for this year to estimate what I might owe and then comparing them to last year's; the rates are decidedly better, the bracket rate kicks in at a higher value, and the standard deduction is double (though the exemptions are gone).

For simplicity, let's say taxable income for a married couple, filing jointly is $100,000

I'm a UK person but I'll have a go at helping our cousins over the pond out.

I believe you are correct in your current assessment but, I also believe that the tax breaks provided to the average American are time limited, i.e. you will lose those at some point in the very near future, whereas the tax breaks for the wealthy are permanent (or until someone actually changes it).

Cook_County

For most American citizens here in the UK the Trump tax cuts are not relevant because rates of tax here remain higher than in the US. For US citizens who own their own company, Trump's GILTI tax changes are extremely costly.