Santa Monica Observer - Community, Diversity, Sustainability and other Overused Words

Trump Tax Plan Attacks Single Parents

Revised Plan Also Reduces Taxes for the 1%, Benefits Trump Family by Billions

 

September 23, 2016

The Trump tax plan could double the tax burden for single parents.

If you are a single parent in America, don't vote for Donald Trump unless you want to pay more taxes.

The latest incarnation of the Donald's tax plan could as much as double the tax bill for unmarried parents. At the same time, it would greatly reduce payments made by the wealthiest citizens.

The single parent penalties would come about with three of the major revisions that Trump proposes for the tax code.

First of all, he wants to get rid of the Head of Household status for filers, forcing them to file as single.

Currently, filing Head of Household gives someone a larger standard deduction, reducing the amount of income subject to taxes. It also allows for an increased income amount to be taxed at lower bracket rates. The status is available to anyone who has a child or other eligible dependent for whom they provide financial support.

Under the Trump plan, an unmarried parent of three children or a widow caring for elderly parents would be paying at the same rates as a single young professional with no dependents at all.

Second, Trump would zing single parents by getting rid of personal exemptions.

Personal exemptions lower the amount of income that will be taxed. Under the current system, there is a personal exemption for each member of a household. In 2016, the exemption is $4,050, so a Head of Household with two children will have $12,150 of his or her income not subject to federal income taxation.

Third, Trump would increase the taxes on the lowest end of income.

For Head of Household filers, the first $13,250 of taxable income is now subject to a 10% tax, but Trump would bump it up to 12%.

Added all together, a single parent could see a substantial increase in taxes. The proposed Child Care Tax credit would make up for some (not all) of the loss, but it only applies to children below the age of 13, so parents of teenagers would be particularly hard-hit.

At the same time that Trump is increasing the tax burden at the lowest end of incomes, he would give a big tax cut to his own super-wealthy friends and family.

Single parents would shoulder a bigger share, while the wealthiest Americans would pay less.

The top income tax rate for millionaires and billionaires would drop from 39.6% to 33% under the revised plan. Thanks to the many loopholes and deductions, the effective tax rate for the wealthiest 400 Americans is just 20%, while many of the 1% pay no taxes at all.

As if that weren't damaging enough, Trump would also do away altogether with the estate tax, which is only paid by the richest .2% of Americans.

Trump's family stands to gain $4B from these proposals, while the huge loss in federal revenue would jeopardize funding needed for a variety of programs that benefit lower- and middle-class families, including education and infrastructure.

The Trump plan is a plan that takes from the poor and gives to the rich.

It wouldn't make America great, it would just keep a greater number of Americans in poverty.

 

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