Meanwhile, under Trump’s revised proposal, middle-class earners who receive comparatively little pass-through income would face a rate as high as 25 percent.
Few Details
Trump provided no details regarding the income levels at which his new individual tax rates would apply. Those details are important because they signal the trigger point at which the new rates would hit the middle class. The Pew Research Center set the floor for middle-class annual income at $24,042 for an individual and $48,083 for a family of four in 2014.
Trump’s original plan applied his lowest tax rate to single filers making between $29,000 and $54,000 (and to married filers earning between $58,000 and $108,000). “The real thing is, when push comes to shove, will he cut taxes for people making 20 to 30k a year?” Sullivan said. “In his original plan, he said he would.” Now, it’s unclear.
Trump also on Monday reiterated his call to end the estate tax, which currently applies a 40 percent rate to any estate worth more than $5.45 million for an individual (or $10.9 million for a couple). Repealing the tax, which is paid by 2 out of every 1,000 people who die, would cut federal revenue by $320 billion to the federal deficit over 10 years, the Center for Budget and Policy Priorities said.