Trump Considers Middle Class Tax Cuts

Reuters reportingthat former President Donald Trump has, “indicated to advisers” that he may be open to new middle-class tax cuts if he is re-elected for a second term in the White House, but notes that sources say Trump is yet to make a firm commitment.

• Reuters reports that among the ideas, "is a cut to the federal payroll tax... a move that could lower the flow of money into the Social Security and Medicare trust funds and open Trump to criticism from Democrats...”
• The reports states that Trump's economic advisers are seeking a payroll tax cut, similar to one which was proposed, but never acted upon, in 2020 to boost the economy during the COVID-19 pandemic.
• The report add that other ideas include, “an increase in the so-called standard deduction on year-end tax returns and a cut to the marginal income tax rate for middle-income households… Taken as a whole, the conversations indicate that Trump and his advisers are serious about substantial tax cuts if he beats Democratic President Joe Biden in the November general election.”
• Lisa Desjardins at PBS notes on Trump and Biden's respective tax plans: “Both would keep cuts in place for households making under $400,000 annually, but they have very different visions beyond that. Trump would keep all individual and corporate cuts. President Biden would like to raise the corporate rate from 21 to 28 percent, and Biden's plan would bump up high-income earners from 37 percent to 39.6 percent.”