President Donald Trump of the United States is attempting to implement a radical new proposal that would allow many Americans to keep more of their hard-earned money and pay fewer taxes.
Who would be impacted by Trump’s proposal to eliminate federal taxes?
The Trump administration has proposed a number of tax measures, such as eliminating Social Security, overtime, and tip taxes, as well as eliminating federal income taxes for those making under $150,000.
Nearly every American would profit from the money that goes directly into their pockets since, according to the U.S. Census Bureau, 93% of Americans over the age of 15 earned less than that amount in 2022.
Americans would continue to pay Social Security and Medicare, as well as state and local taxes, under the proposal.
“Instead of taxing our citizens to enrich foreign nations we should be tariffing and taxing foreign nations to enrich our citizens,” Trump asserted. “Does that make sense? Right?”
In the event that federal taxes were eliminated, how much would you save?
“Those who earn more will gain more if federal taxes are abolished,” Jaclyn DeJohn, Director of Economic Analysis at SmartAsset, told Newsweek.
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“Because federal marginal tax rates increase as you earn more income, someone in the 24% tax bracket stands to gain more than those in the 22% tax bracket, who in turn stand to gain more than those in the 12% or 10% income bracket,” DeJohn stated.”
“For example, someone earning $149,000 would save an estimated $25,300 on their federal taxes – an effective savings of about 17.0% per year. Someone earning $49,000 would stand to save about $3,896 annually on their federal taxes, or an effective rate of about 8.0%”.
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However, the precise amount you would save would vary depending on your location, income, and local tax laws. Numerous internet calculators are available to assist you in determining the approximate amount.
