President Trump and his administration had planned on sharing details regarding their tax plan for a potential second term should he be re-elected, but the coronavirus delayed this reveal.
The President’s team has committed to releasing more information regarding the tax approach for 2021 and beyond before Election Day and have already started to share “big picture” cornerstones of what those policies would look like.
President Trump’s plan for taxes going forward is much different from the Democratic challenger in Joe Biden. The biggest difference, of course, is the promise that the President will not raise taxes at all – something the Biden Administration has said they’d do to wealthy Americans upon election.
Below we highlight some of the cornerstones of what a second Trump term tax proposal should look like.
A Major Payroll Tax Cut or Forgiveness
Any second term tax plan from the President is expected to involve a tax cut to the payroll taxes. President Trump already signing an Executive Order designed to defer payroll taxes in an effort to boost and support the economy. The President has proposed that this tax cut become permanent – or at least permanently forgiven – should he win re-election.
In that case, all of the payroll taxes deferred from September 1, 2020 to December 31, 2020 would be forgiven entirely. Payroll taxes would then start up again in the new year.
Lower Taxes for Blue Collar, Middle American Families
Prior to the shutdown caused by the coronavirus, the President’s team had been expected to propose major tax cuts for the middle class.
It’s unclear how these plans could have changed or been modified given the Corona virus. professionals believe that the President will continue to push for this kind of relief for millions of Americans. One of the proposals considered is a lowering the 22% tax rate for middle class families to 15%. Others feel that the President would like a wholesale reorganizing of the tax bracket system.
President Trump has also been adamant about finding ways to codify and make permanent sections of the Tax Cust and Jobs Act of 2017. Those tax cuts are expected to expire in 2025 if they aren’t extended or made permanent.
It’s also believed that the President would want to lower taxes across the board, improve and increase standard deductions for all Americans, double the current Child Tax Credit, and create new tax credits for different classes of dependents, too.
Another Round of Stimulus Checks
While the first round of coronavirus stimulus checks were much appreciated by all that got them but despite various round of negotiations, the Democrats and Republicans have been unable to confirm and provide a second stimulus check.
Congress has remained deadlocked over how to best proceed with another round of pandemic relief, but the President has been hammering the need for at least one more round of checks to go out ASAP.
Some believe the President wants the checks to be even bigger than $1,200 per person.
