Former President Donald Trump has proposed eliminating federal income taxes for individuals earning less than $150,000 per year, a policy that could lead to substantial changes in the finances of millions of Americans. According to Newsweek<\/a>, this proposal would mean a significant boost in take-home pay for a large portion of the workforce. <\/p>\n\n\n\n
The vast majority of American workers would see an increase in their after-tax income under this proposal. According to U.S. Census Bureau data, approximately 93% of Americans aged 15 and older earn less than $150,000<\/strong> annually, meaning they would qualify for zero federal income tax<\/a>. <\/p>\n\n\n\n
The impact of Trump’s tax cut depends on income levels, with higher earners in this bracket seeing the largest dollar-value savings, while lower earners would experience a smaller reduction in taxes as a percentage of their income.<\/p>\n\n\n\n
For instance, a worker earning $149,000<\/strong> per year could save approximately $25,300 annually, which translates to a 17%<\/strong> increase in take-home pay. In contrast, a worker earning $49,000 per year would save around $3,896 annually, representing an 8% increase. <\/p>\n\n\n\n
For context, the average annual salary in the U.S. is $63,795, with roughly 9% of this income currently deducted for federal taxes. If this tax were eliminated, a worker in Brooklyn, New York, earning this amount would see a noticeable increase in their paycheck.<\/p>\n\n\n\n
Even if federal income taxes were eliminated, other deductions would still apply. Employees would still pay :<\/p>\n\n\n\n
Some states, such as Texas, Florida, and Tennessee, have no state income tax, meaning residents there would benefit the most from this federal tax elimination. Meanwhile, states with high income tax rates<\/a> (such as California, New York, and Oregon) would still see significant paycheck deductions.<\/p>\n\n\n\n
To determine how much more you would take home under Trump’s plan, you need to consider several factors, including your current salary, the income tax rate in your state, and your existing federal income tax deductions<\/a>.<\/p>\n\n\n\n
Each of these elements influences how much of your paycheck is withheld for taxes. Many online tools, such as SmartAsset’s<\/a> paycheck calculator, can help estimate the potential changes to your take-home pay based on these variables.<\/p>\n\n\n\n
While Trump’s proposal has gained attention, it would require Congressional approval before becoming law. The potential economic impact, government revenue loss, and long-term feasibility would be central to the debate if this tax plan were formally introduced. <\/p>\n\n\n\n
Trump’s campaign has positioned this proposal as a major financial relief for middle-class Americans, but its implementation would depend on the political landscape and legislative negotiations.<\/p>\n\n\n\n
For now, Americans earning under $150,000<\/strong> per year can speculate on how much extra money they might take home\u2014but any real policy change would depend on election results and legislative action.<\/p>\n","protected":false},"excerpt":{"rendered":"
If enacted, Trump’s tax plan could significantly increase take-home pay for millions of Americans earning under $150,000 per year. The proposal has sparked debate over its potential economic impact and feasibility.<\/p>\n","protected":false},"author":9,"featured_media":103158,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[44],"tags":[],"class_list":["post-103157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/posts\/103157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/comments?post=103157"}],"version-history":[{"count":3,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/posts\/103157\/revisions"}],"predecessor-version":[{"id":103164,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/posts\/103157\/revisions\/103164"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/media\/103158"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/media?parent=103157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/categories?post=103157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/wp-json\/wp\/v2\/tags?post=103157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}