Trump’s Tax Push to Help Middle Class Could Help Top Earners Too

  • If president proposes 10% income rate cut, rich would benefit
  • Other options: cut payroll tax, boost earned income tax credit
Trump’s pre-election tax-cut pledge baffles the GOP: Bloomberg’s Sahil Kapur reports.Source: Bloomberg
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President Donald Trump’s surprise call to cut middle-income families’ taxes by 10 percent could mean top earners get a break, too.

It’s still unclear how Trump will propose to reduce the tax burden on middle-class Americans, but one of the most straightforward ways would be to lower rates by 10 percent for single filers making up to $82,500. U.S. income tax rates are graduated and income dollars get taxed in chunks as they move up through the brackets -- which means wealthy Americans would also get to apply the reduced rate on their first dollars of income.