Project 2025’s tax plan: hike taxes for average Americans

IT FAILED TO TRICKLE DOWN TO WORKERS AND THE TAX CUTS SKEWED SEVERAL ORDERS OF MAGNITUDE TOWARD THE TOP 1% OF OWNERS EARNERS. MANY OF THE PROVISIONS WILL EXPIRE IN 2025, WHICH IS WHERE PROJECT 2025 STEPS IN. THESE 922 PAGE HANDBOOK FOR THE NEXT CONSERVATIVE PRESIDENCY TAKES A BIG SWING AT TAX POLICY AND THE CHANGES SUGGESTED WOULD MEAN HIGHER TAXES FOR THE AVERAGE AMERICAN FAMILY, WIDENING AMERICA'S ALREADY MASSIVE INCOME GAP. HERE IS HOW. THIS YEAR, THE UNITED STATES HAS SEVEN TAX BRACKETS. YOUR TAXABLE INCOME AND FILING STATUS ASSIGNMENT DETERMINE WHICH BRACKET YOU FALL UNDER AND THAT OUTLINES THE PERCENTAGE YOU WILL OWE ON DIFFERENT PORTIONS OF YOUR INCOME. THE TOP TAX BRACKET AS A FEDERAL INCOME RATE OF 37%. THE LOWEST BRACKET HAS A 10% INCOME TAX. MILLIONS OF AMERICANS, BY THE WAY, DO NOT MAKE ENOUGH MONEY TO FALL INTO ANY OF THE SEVEN BRACKETS, WHICH MEANS, THEY DO NOT PAY FEDERAL INCOME TAX. NO, VIRTUALLY ALL AMERICANS PAVE SOME FORM OF TEXT, WHETHER SALES TAX, ESTATE TAX, OR PROPERTY TAX. 40% OF AMERICAN HOUSEHOLDS END UP NOT KNOWING ANY FEDERAL INCOME TAX WHEN THEY APPLY FOR GOVERNMENT TAX CREDITS AND DEDUCTIONS. NOT SO UNDER PROJECT 2025. IN FACT, ON PAGE 696 OF PROJECT 2025, IT CALLS FOR, SIMPLIFYING THE TAX STRUCTURE BY ENACTING A SIMPLE TO WRITE INDIVIDUAL TAX SYSTEM OF 15% AND 30% THAT ELIMINATES MOST DEDUCTIONS, CREDITS, AND EXCLUSIONS. DEPENDING ON YOUR CURRENT INCOME, YOU COULD BE TEXT TAXED MORE OR LESS UNDER THIS PLAN, BUT FOR MILLIONS OF WORKING- CLASS AMERICANS, TAXES WOULD SHOOT UP. BY RAISING THE FLOOR OF OUR TAX BRACKETS, BUT LOWERING THE CEILING, PROJECT 2025 WOULD SHIFT THE COUNTRY'S TAX BURDEN FROM WHICH TO MIDDLE AND LOWER CLASS AMERICANS. IT IS A TAX HIKE OR WORKING- CLASS AMERICANS. ACCORDING TO ANALYSIS FROM THE CENTER OF AMERICAN PROCESS ANON POLICY INSTITUTE, UNDER THIS NEW SYSTEM, THE AVERAGE FAMILY OF FOUR WOULD SEE A TAX INCREASE OF $2985. WHILE HOUSEHOLDS REPORTING OVER $10 MILLION IN INCOME WOULD SEE A TAX CUT OF $1.5 MILLION. TO ADDRESS THE SECOND PART OF THAT SECTION, ELIMINATING QUOTE, MOST DEDUCTIONS, CREDITS, AND EXCLUSIONS. THE TAX CREDITS WORK LIKE GOVERNMENT INCENTIVES, ALLOWING YOU TO WRITE OFF EXPENSES GENERALLY IN SOCIETY'S INTERESTS. PROJECT 2025 JUST SAYS, ELIMINATE MOST. SO, WHICH ONES YOU ELIMINATE THE TAX CREDITS MEANT TO GIVE TAX BREAKS FOR CHILDREN UNDER 17? SURE. IT WAS ONLY USED BY 36 MILLION HOUSEHOLDS IN 2022. ELIMINATE THE AMERICAN OPPORTUNITY TAX CREDIT, WHICH ALLOWS PEOPLE TO WRITE OFF TUITION COSTS AND SCHOOL SUPPLIES? WHY NOT? ELIMINATE CLIMATE CREDITS INCLUDED IN THE PRESIDENT'S INFLATION REDUCTION ACT? THOSE ALLOWED PEOPLE TO LIVE CLIMATE CONSCIOUS LIVES. THEY HAVE BEEN MORE POPULAR THAN EXPECTED SINCE INTRODUCED. ACCORDING TO NEW DATA INTRODUCED BY THE TREASURY DEPARTMENT, AMERICANS COLLECTIVELY CLAIMED $WERE A.4 BILLION USING ONE OF BIDEN'S GREEN SUBSIDIES TO PURCHASE SOLAR PANELS OR OTHERWISE MAKE HOMES MORE EFFICIENT. EVERYTHING WE HAVE GONE OVER SO FAR IS JIM INTO ONE SINGLE SENTENCE ON PAGE 696. I WANT TO LOOK AT SOME OF THE OTHER SUGGESTIONS IN PROJECT 2025. IT SUGGESTS DECREASING THE CORPORATE TAX RATE TO 18%. IT HAD ALREADY BEEN CUT TO 21% BY THE TRUMP TAX-CUT. IT WAS AT 30% BEFORE THAT. IT CALLS FOR A NEW CONSUMPTION TAX, CHARGED TO YOU WHEN YOU SPEND MONEY AND FLOATS THE IDEA OF A NATIONAL CONSUMPTION TAX. THE MOST AGGRESSIVE FORM OF TAXES AND REPRESENT A DISPROPORTIONATE BURDEN FOR POOR AND MIDDLE-CLASS FAMILIES. PROJECT 2025 ARGUES FOR THE APPEAL OF THE TAX ON DRUG MANUFACTURERS, WHICH WOULD DESTROY THE GOVERNMENT'S ABILITY TO CONTROL THE PRICE OF MEDICATION. IT CALLS FOR A CAP OF $12,000 ON UNTAXED EMPLOYEE BENEFITS COMPANIES CAN WRITE OFF FOR PRODUCTION, WHICH CAN THIS INTENSIFIES OFFERING MORE COMPREHENSIVE HEALTH BENEFITS. THE AVERAGE FAMILY MEDICAL PLAN COSTS $70,000, $5000 MORE THAN THAT RIGHT OFF. PROJECT 2025 IS INTERESTED IN MAKING EMPLOYEE HEALTH MORE COST FOR THE PRIVATE COMPANIES AND MAKE IT PRIVATE HEALTHCARE WORK COSTLY FOR THE PATIENTS. SO THESE POLICIES CANNOT BE UNDONE. QUOTE, TREASURY SHOULD SUPPORT LEGISLATION, INSTITUTING A 3/5 VOTE THRESHOLD IN THE U.S. HOUSE AND SENATE TO RAISE INCOME OR CORPORATE TAX RATES TO CREATE A WALL OF PROTECTION FOR THE NEW RATE STRUCTURE. THAT IS ON PAGE 698. HELL IS PART HAS BEEN TOUTING ANOTHER BRILLIANT TAX SCHEME. AS WITH HIM THURSDAY AT A PRESS CONFERENCE IN MAR-A-LAGO. >> WE ARE NOT GOING TO CHARGE TAX TO SOCIAL SECURITY, THE SENIORS. WE ARE NOT GOING TO DO IT. AND ALSO CHARGE, I SAY THE TWO THINGS, NO TAX ON SENIORS, SOCIAL SECURITY, AND NO TAX ON TIPS. VERY SIMPLE. >> PUTTING ASIDE, HE REALLY DOES SEEM TO HAVE TROUBLE STRINGING TWO SENTENCES THAT MAKE SENSE TOGETHER, WHAT HE SAID SOUNDS LIKE A GOOD DEAL, LIKE HOW A KID RUNNING FOR CLASS PRESIDENT PROMISES PIZZA FOR LUNCH EVERYDAY. WHEN YOU READ BETWEEN THE LINES, DOES NOT ACTUALLY ADD UP. THE CENTER FOR AMERICAN PROGRESS IS, IT WOULD DELIVER THE LITTLE FOR RESTAURANT SERVICES, BUT DO BEFORE MONEY MANAGERS WHO COULD UNDER THIS LAW TRANSFER COMMISSIONERS THEY EARN INTO A FEE-BASED MODEL AND PAY NO TAX ON THEIR EARNINGS. AS FAR AS TAXES ON SOCIAL SECURITY, THE MAJORITY OF LOW AND INCOME AMERICANS ON SOCIAL SECURITY DO NOT EARN ENOUGH MONEY TO BE TEXT ON THEIR BENEFITS, BUT RICH PEOPLE DO. HIGHER EARNERS THAT STILL RECEIVE SOCIAL SECURITY WOULD BENEFIT THE MOST. ACCORDING TO THE COMMITTEE FOR A RESPONSIBLE BUDGET, ELIMINATING TAXES ON SOCIAL SECURITY WOULD ACCELERATE SOCIAL SECURITY'S INSOLVENCY BY A YEAR TO 2022, AND BRING MEDICAID TO INSOLVENCY IN 2030, SIX YEARS AHEAD OF THE CURRENT RATE. IT WOULD INCREASE THE DEFICIT BY OVER $1 TRILLION ME WHICH WOULD LEAD TO MORE CUTS. IF THESE POLICIES DO >>> JOINING ME NOW IS DOROTHY BROWN, PROFESSOR AND CHAIR IN TAXATION AT GEORGETOWN UNIVERSITY LAW CENTER GO. SHE'S THE AUTHOR OF THE BOOK, QUOTE, THE WHITENESS OF WEALTH HOW THE TAX SYSTEM IMPOVERISHES WEALTHY AMERICANS. THANK YOU FOR BEING WITH US AGAIN. I NEED YOU TO HELP US GET THROUGH THIS. IT IS A DENSE BOOK ANYWAY, NOT EASY TO READ PROJECT 2025. THE TEXT PART IS LATE AND WITH FEW WORDS THAT MEAN A LOT OF THINGS. LET'S BREAK SOME OF THIS DOWN. BEFORE THE BREAK, WE WENT OVER A LOT. PROJECT 2025 CALLING FOR, IN TERMS OF TEXT CHANGES, IS THERE ANYTHING THAT WORRIES YOU IN PARTICULARLY? >> YES, THERE'S SOMETHING THAT WORRIES ME MORE THAN WHAT YOU TALKED ABOUT IN THE LAST SEGMENT, THAT SECTION OF THE TREASURY DEPARTMENT, I CALL IT TRUMP 2.0. SINCE THEY WERE REVERSED, I'M QUOTING THEIR LANGUAGE, THE RACIST EQUITY AGENDA OF THE BIDEN ADMINISTRATION OF THE GERMAN DEPARTMENT. PROJECT 2025 IS A GIFT THE FAIR ADMINISTRATION OF OUR TEXT TAX LAWS, BECAUSE THEY DON'T WANT TO PLAY FAIR. THEY WANT TO AUDIT ENEMIES, POLITICIANS WOULD BEAT THEM, JOURNALISTS WHO HAVE OUTED THEIR ILLEGAL ACTIVITY, PROSECUTORS WHO HELPED BRING THEM TO JUSTICE, ANYONE WHO HAS EVER CROSSED DONALD TRUMP. THEY COULD ALSO REVOKE THE TAX- EXEMPT STATUS OF THE NAACP LEGAL DEFENSE FUND, OR THE ACLU, OR OTHER WHO WROTE ORGANIZATIONS WHO HAVE HELD DONALD TRUMP'S FEET TO THE FIRE WHEN HE WAS PRESIDENT. THEY COULD LEAK PERSONAL TAX RETURN INFORMATION JUST FOR EMBARRASSMENT OR FOR DACHSHUND. WHILE THAT IS ILLEGAL, WHO WOULD STOP THEM? NOT THE DEPARTMENT OF JUSTICE. THAT WOULD BE ANOTHER ARM OF THE TRUMP ADMINISTRATION 2.0. HOW WOULD THEY DO THIS WORK BY CREATING OR INCREASING THE NUMBER OF PEOPLE WHO WORK IN TREASURY AND ACROSS THE FEDERAL GOVERNMENT, WHOSE JOB DEPENDS ON PLEASING THE PRESIDENT. I AM ANGRY ABOUT THIS AND WE SHOULD ALL BE ANGRY, BECAUSE THEY WANT TO TARGET OUR FELLOW AMERICANS AND USE OUR TEXT DOLLARS TO DO IT. YOU BRING UP A POINT THAT EVERY EXPERT WHO WE HAVE ON EVERY TOPIC HERE BRINGS UP. THAT IS THE SCHEDULE F AND THE FIRING OF UP TO 50,000 EXPERT BUREAUCRATS, REPLACING THEM WITH LOYALISTS, IS THE PART OF THIS THING THAT IS MOST DANGEROUS BECAUSE IT WILL INFRINGE THIS. NOT THE KIND OF THING THE NEXT PRESIDENT CAN COME IN REVERSE. NOW YOU ARE IN FRENCH POLITICS OF WHAT IS SUPPOSED TO BE A POLITICS. THE OTHER THING THAT BOTHERS ME IS THE AGGRESSIVE NATURE OF THESE. THE CONCEPT THERE WILL BE TWO TEXT LEVELS, EVERYONE FLOATS THIS. A FLACK TEXT, YOU CAN FILL OUT YOUR TAXES ON A POSTCARD. , YOUT YOUR TAXES ON A POSTCARD. >> ABSOLUTELY. AND IT WILL AFFECT OUR LOWEST INCOME AMERICANS, OUR LOWEST INCOME WORKERS WHO ARE DOING EVERYTHING THEY CAN, WORKING MULTIPLE JOBS TRYING TO MAKE ENDS MEET, AND THEY DO IT, WHY? SO THAT YOU CAN GIVE CORPORATIONS A LOWER TAX RATE, WHICH MEANS CORPORATE SHAREHOLDERS, THE RICHEST AMERICANS AMONG US, THAT IS NOT FAIR. IT GOES BACK TO THEIR WARNING TO CHANGE OR REVERSE, IN THEIR LANGUAGE, THE QUOTE, UNQUOTE RACIST, EQUITY AGENDA, WITH ALL THE BIDEN ADMINISTRATION HAS DONE IN THE TREASURY DEPARTMENT IS SEEK FAIRNESS. THEY DON'T WANT TO PLAY FAIR. >> TALK TO ME ABOUT THIS TWO RATE NEARLY FLAT TAX SYSTEM. >> IT IS BAD . IT IS EXACTLY WHAT YOU SAID. THE HIGHEST TAX RATE IS 37%. IT GOES DOWN TO 30%. MILLIONAIRES, WHO ARE ALREADY ESCAPING TAXATION, THEY GET A LOWER RATE. THEY WANT THE INCOME FROM STOCK TO GO DOWN FROM 20% TO 15%, WHICH WOULD BE HIGHER THAN WORKING-CLASS AMERICANS WOULD PAY, BECAUSE THEY DON'T HAVE MONEY IN THE STOCK MARKET IN A WAY THAT GIVES THEM ACCESS TO THAT LOW 15% RATE. WORKING-CLASS, MIDDLE-CLASS AMERICANS WOULD SEE THEIR TAXES GO UP AND THE RICHEST AMERICANS LIKE THOSE OIL BARONS WHO ARE IN THE ROOM WITH TRUMP TALKING ABOUT GETTING TAX BREAKS, TALKING ABOUT GETTING POLICIES THAT SUPPORT THEM, THOSE PEOPLE , THOSE BILLIONAIRES, THEY WOULD LOVE THIS AND THAT IS JUST NOT FAIR. >> GOOD TO TALK TO YOU. THANK YOU SO MUCH.