Page 25 - ARUBA TODAY

BUSINESS Monday 30 october 2017
A25

Hard to define America’s middle class, courted by both sides

By MARCY GORDON the theme constantly. “We and Presidential Studies at The middle-class family acknowledged, though, “It
AP Business Writer will cut taxes for hard-work- American University. “Be- could take advantage of a could be that a singular ex-
WASHINGTON (AP) — What ing, middle-class families,” cause of the burden of heftier child tax credit and ception exists.”
is middle class? he pledges. “It is time to ig- governing, they (the Re- the extra money that could But mainly Brady’s an-
President Donald Trump nite America’s middle-class publicans) have a problem come from the bigger stan- swer was stay tuned: The
and Republican leaders proposed income levels
are promoting their tax-cut- to correspond with each
ting plan as needed relief tax bracket will soon be
for the stressed American revealed. That’s where
middle class and a catalyst the math comes in. Under
for job creation. the current regime of sev-
Democrats say they’re en brackets, the biggest
the ones looking out for group of U.S. taxpayers
the middle class, by fight- (about 30 percent) falls in
ing against proposed tax the second-lowest brack-
cuts that would benefit et, paying a 15 percent tax
big companies and the rate. An individual with tax-
wealthy but hurt the av- able annual income be-
erage American. It’s not tween $9,325 and $37,950
easy to exactly define this is in that group. Because
middle class, whose mem- it’s the largest group, some
bers are championed and might consider it as stand-
courted for their votes by ing in for the middle class.
both sides. Lawmakers Some critics of the Republi-
and experts have differing can plan say that because
views on the numbers. it would eliminate the 15
The Tax Policy Center sets percent bracket, some
its “middle quintile” — third people who’ve been
slice of five — of household taxed at 15 percent could
income, including tax-ex- be pushed into the next
empt employee benefits In this Oct. 26, 2017, photo, House Ways and Means Committee Chairman Kevin Brady, R-Texas, higher bracket, 25 percent.
like health insurance, at whose panel is charged with writing tax law, talks to reporters on Capitol Hill in Washington. That’s not yet known, says
Associated Press
$48,300 to $85,600 a year. Daniel Berger, a research
But be careful about call- miracle once again.” having an effective mes- dard deduction. associate at the Tax Policy
ing that middle class, it says To fill middle-class stock- saging system.” But there are too many Center, a joint project of
— there’s no formal defini- pots, Trump is promising For the opposition Demo- holes in the spare nine- the Urban Institute and the
tion. Other experts see the that the tax cuts would crats, on the other hand, page plan, like the income Brookings Institution.q
middle-income range at bring a $4,000 or $5,000 “It’s easier to have a clear levels tied to each tax
around $44,000 to $72,000 pay raise annually for the message here that the tax bracket and what might
(middle quintile), or $72,000 average family. Skeptical plan would hurt the mid- happen to other deduc-
to $112,000 (fourth quintile, tax experts and Democrats dle class and the working tions used by middle-class
both based on 2015 data). say the claim is based on class,” Thurber suggested. people, to know how it ac-
At the high end, Hillary Clin- fuzzy math. The nearly $6 trillion tax tually would affect individ-
ton and President Barack Pro-tax cut troops have plan calls for cutting the ual taxpayers and families.
Obama, as candidates, fanned out to middle-class corporate tax rate from 36 A chief architect of the
defined middle class as neighborhoods around the percent to 20 percent, re- plan, House Ways and
earning up to $250,000 a country with a message to duced taxes for most indi- Means Committee Chair-
year. That raised eyebrows voters on their doorsteps: viduals, and doubling the man Rep. Kevin Brady,
because it’s in about the slashing taxes for corpo- standard deduction used was pressed by reporters
top 5 percent of incomes, rations would unleash an by most average Ameri- this past week: Will it truly
and the two Democrats economic bonanza. The cans to $12,000 for individu- help the middle class? Can
had pledged not to raise resulting new jobs, faster als and $24,000 for families. the Republicans guaran-
taxes on the middle class. growth and ample pay The number of tax brackets tee that everyone will get
The median, or midpoint, raises would help them would shrink from seven to a break, that no ordinary
U.S. household income was and everyone else, the resi- three or four, with respec- person will end up paying
$57,617 last year, accord- dents are told. tive tax rates of 12 percent, more?
ing to the Census Bureau. “That sort of trickle-down 25 percent, 35 percent and “The elevator goes down
Trump, in his rallying pitch- ... is a very hard message,” to be determined. Inheri- at every (income) level. ...
es for the far-reaching tax says James Thurber, pro- tance taxes on multimillion- I can guarantee that ev-
overhaul that is his main fessor and founder of the dollar estates would be re- ery American will be better
legislative priority, sounds Center for Congressional pealed. off,” said Brady, R-Texas. He