How Trump’s Tax Plan Affects You
On April 26, 2017, the Trump administration released its tax reform plan. It's similar to the "Five-Part Tax Plan" outlined by Trump during the 2016 presidential campaign.
The Tax Policy Center analyzed the 2016 plan. They said it would boost the economy over the next two to three years. That's because the tax cuts will put more money into people's pockets.
But in the long run, the Center predicted the plan will dampen economic growth.
That's because it would add $11.6 trillion to the $19 trillion national debt. That will eventually weaken the dollar and raise interest rates. The debt is already more than the nation's annual economic output. To find out why this is important, see Debt-to-GDP-Ratio. (Source: "An Analysis of Donald Trump's Tax Plan. Figure 1," The Tax Policy Center, December 22, 2015.)
On April 24, 2017, Trump said he didn't care if the tax plan increased the debt. On Wednesday, April 26, Treasury Secretary Steve Mnuchin wouldn't say whether the new plan would increase the debt. (Source: "White House Just Outlined Its Tax Plan. Here's What's in It," CNBC, April 26, 2017.)