Rep. Paul Ryan (R-Wis.) sits beside President Trump during lunch at the White House on Mar. 1. REUTERS/Kevin Lamarque By Max Ehrenfreund President Trump and House Speaker Paul D. Ryan both want to rewrite the tax code, but their proposals differ on how much tax relief to give the middle class. Trump wants a tax cut across the board, according to the plan he published during the campaign. He has proposed relief for the wealthy especially, but also for less affluent households. The plan that Ryan (R-Wis.) and his colleagues in the House have put forward would not substantially reduce taxes for the middle class, and many households would pay more. Trump's plan arguably reflects his unique style of conservative populism. The proposal would be extremely costly for the government, and the president's past comments suggest he would be willing to put the federal government deeper into debt to fund breaks for the middle class. Ryan's plan would instead simplify and streamline the tax code in accordance with conservative orthodoxy, eliminating the goodies for households with modest incomes that Trump would preserve or expand. In all, taxpayers with roughly average incomes could expect a tax cut of around $1,100 a year under Trump's plan, compared to just $60 under Ryan's plan once the proposals were fully implemented. Now, after even a united Trump-Ryan effort on health care failed to win over enough Republicans to get through the House, their hopes of passing a tax plan depend on getting on the same page quickly. |
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