Written by Sharvan Kumar
Trump's plan focused on lowering payroll taxes, which would lead to a direct increase in take-home pay for middle-income earners.
Those with lower income levels would benefit from a reduction in the Social Security tax rate, as they pay a larger proportion of their earnings in payroll taxes.
Younger workers who are in the early stages of their careers would see a larger cumulative benefit from payroll tax cuts over time, as they would be paying into the system for many years.
Trump’s plan aimed to reduce the burden of payroll taxes on businesses, encouraging small business owners to hire more employees, invest in growth, and increase wages, making it an attractive proposition for entrepreneurs.
The self-employed, who pay both the employee and employer portions of payroll taxes, would see a significant benefit.
Individuals in states with high income taxes, like California or New York, could see significant tax relief from the reduction in payroll taxes.
Senior citizens who choose to continue working after retirement could benefit from lower payroll taxes, which would reduce the amount they contribute to Social Security while still allowing them to receive Social Security benefits.
From East West Hunt