Trump officially signed the US tax reform bill. What impact will this bill have on the United States?

In the tax reform plan announced last Wednesday, the Trump administration proposed comprehensive tax cuts and changes to tax laws. It is estimated that once the plan is successfully implemented, trillions of dollars in benefits will be transferred from the lower and middle classes to the upper classes in the United States over the next ten years. Since the plan clearly benefits the wealthiest classes in the United States and is difficult to gain the support of Democrats and the unity within the party, the possibility of the tax reform plan passing in Congress is getting smaller. Impact

The top 0.1% of the rich: 14% tax relief, far exceeding other classes

According to previous reports from Wall Street News, the Trump administration’s tax reform plan will cancel the AMT (replacement (a secondary tax to prevent the wealthy from tax evasion), inheritance tax, net investment income tax and real estate tax, and reduce the corporate income tax from 35% to 15%.

Wealthy entrepreneurs and hedge fund managers will save a fortune by cutting the corporate income tax from 35% to 15%. According to research from the Tax Policy Center, the top 1% of households by income receive at least half of the corporate income tax cuts.

At the same time, Tax Policy Center research also shows that nearly 62% of the population with incomes from US$500,000 to US$1 million are paying AMT and will benefit from the repeal of the tax. Only a tiny fraction of households making less than $100,000 would pay the tax, so repealing it would do little to help the middle and lower classes.

Similarly, abolishing the estate tax will most benefit the richest families in the United States. Data show that the top 10% of income earners pay 90% of inheritance taxes, and more than a quarter of the top rich (top 1% of income earners) have paid inheritance taxes.

Trump said he could have introduced an infrastructure plan before the tax reform bill was completed. But he intends to wait until after tax reform legislation because it is "the easier one to achieve." People are happy to see the results, both the Communist Party and the Democratic Party. "As you know, we will receive strong support from the Democratic Party on the issue of infrastructure."

***The Republican Party’s tax reform bill will cut the corporate tax from 35% to 21%, reduce taxes on small and medium-sized enterprises, and reduce taxes on multinational companies’ overseas income. Lowering personal income tax rates, especially the top bracket, has all but abolished the inheritance tax. The tax reform hopes that companies will expand investment and production, boost employment and wages, and stimulate the economy. But it has also been criticized for "robbing the poor to give to the rich" and adding to the already high US$20 trillion debt in the United States.