These Parents Will Fare Worst Under Trump's Tax Plans
byEricka SouterNov 14, 2016
Photograph by Twenty20
True to Donald Trump’s campaign pledge, he has plans for
HUGE tax cuts—that is, for everyone except single parents.
A review of the president-elect’s proposal by the Tax Policy
Center (TCP) reveals that some taxpayers, like single people, will pay more than
they do today. That flies in the face of Trump’s claims that he would cut taxes
for every income group.
In fact, another TCP paper asserts that his plan would
“significantly raise taxes for millions of low- and middle-income families with
children, with especially large tax increases for working single parents.”
The question surely on the mind of his supporters:
how is this possible? That can be explained by three major changes added to his
plan. First, he will eliminate the
head-of-household status. That means
single parents would have to file as individuals and that would increase their
Second, as the law stands now, a single parent with one
child can take a $9,400 standard deduction and two $4,100 exemptions. That
reduces the parent's taxable income by $17,600.
Trump will eliminate personal and dependent exemptions, which raises
taxable income for all single parents who do not itemize. There would then be a
$15,150 standard deduction rather than $17,600.
It’s reportedly even worse for bigger families. Taxable income
would go up by $4,100 for each additional child.
Third, the tax schedule would go from seven rates to
three, which raises rates at some income levels. That means higher taxes for single
parents with adjusted gross incomes between $15,150 and $560,00. However, if
a single parent's income is below $15,150, they would owe no tax.
On the bright side, all families with children
under 13 would get a deduction for childcare costs.
Sadly, the real winners in Trumps tax plan are the wealthy. Those
making more than $560,000 will pay a 33 percent tax rate, which is a decrease from the
current rate of 39.6 percent. Probably not what many blue-collar supporters
envisioned when they thought Trump meant when he said "make America great again."