Many American households benefited from President Trump’s tax cuts that took place shortly after he took office. Trump’s changes to tax laws, not only with regard to rates but also with regard to simplification of tax forms, have probably been the most thorough since President Reagan. And it can be argued that Trump’s tax cuts were a key reason that the economic boom that has occurred since the end of the financial crisis has continued as long as it has. But Trump isn’t content with that, and has floated the idea of further tax cuts to help the middle class.
In a way, Trump is being pressured into doing that by potential Democratic Presidential contenders such as Elizabeth Warren, who are using class warfare as a key component of their campaigns. Warren is campaigning on a soak the rich policy, proposing wealth taxes on the rich and financial transaction taxes on many financial transactions. Whether Warren’s proposals actually appeal to middle class Americans or not, Trump has to come up with something that would appeal to middle class voters.
One would have to imagine that a tax cut would be far more appealing, as it’s something that actually benefits middle class taxpayers, versus more taxes on the rich that not only won’t directly benefit the middle class but that might actually trickle down to negatively affect middle class taxpayers. Trump has floated the idea of a 15% marginal tax rate for the middle class, something which, depending on how high that tax bracket goes, could save some households thousands of dollars in taxes every year.
Given that it is so late in the year, the likelihood of anything passing this year is slim to none. But pushing through a tax cut proposal next year is certainly a possibility, with tax cuts resulting in boosts to paychecks in what could turn out to be a crucial election year.