Touts Tax Reform, Saying Typical Household
Would Get '$4,000 Pay Raise'
October 12, 2017
U.S. President Donald Trump on Wednesday
promised Americans they are “going to have
so much money to spend” if lawmakers approve
his tax reform plan.
Trump, in an airport hangar in Harrisburg,
Pennsylvania, told a crowd of truckers that
the typical American household would get "a
$4,000 pay raise" with the changes he wants,
although economists say that benefit would
only materialize over eight years, at a rate
of about $500 annually.
Trump's speech to hundreds of truck drivers
— the most common job in more than half of
the country's 50 states —- was intended to
counter the views of independent analysts
that the Republican tax blueprint would
mostly benefit the highest income earners.
These analysts contend that at least some
middle-income taxpayers would pay more, not
less, to the government under Trump's
The president, in his Pennsylvania speech,
did not go into detail of how his plan would
affect the wealthy. He said that his rich
friends have been telling him they do not
want anything from his proposal and are
asking him “to give it to the middle class.”
House officials say the plan would double
the standard deduction so that more income
is taxed at zero percent; the first $12,000
of income for individuals and $24,000 for
married couples would be tax-free, and the
seven existing income tax brackets for
taxable income would be consolidated to
three brackets: 12 percent, 25 percent and
The Republican-controlled Congress, however,
has yet to determine at what levels of
income the new rates would apply, leaving
analysts to guess what effects the changes
would have on any individual taxpayer.
"You better get it passed,” Trump said in a
message to lawmakers.
At least six members of Congress were in the
Trump also wants to trim corporate taxes to
further boost the U.S. economy, the world's
In his remarks, he also touted that since
his election last November, the U.S. stock
market has increased corporate values by
$5.2 trillion and that unemployment is at
its lowest point in 16 years.
Trump administration, when it took office in
January, predicted it would complete a tax
overhaul by August, but now has its sights
set on completing the reforms by the end of
However, congressional tax-writing panels
have yet to hold hearings and Democratic and
Republican lawmakers have widely divergent
views on what changes should be made.
Under some scenarios, the tax cuts could add
to the country's long-term debt of more than
$20 trillion, which would be an outrage to
many conservative Republican lawmakers.
Democratic lawmakers are calling for tax
changes to mostly benefit the country's
middle class and lowest-income taxpayers,
not the wealthiest.
“Democrats want to raise your taxes very,
very substantially,” Trump declared in his
speech, labeling the opposition party as
obstructionists “who are not telling you the