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 tax rate.
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."