What will happen after the tax cuts?

Newest president, Donald Trump, has been the center of many controversies lately. Including his trade policy, his response to the riots, and his relationship with Russia. However, one thing no one seems to talk about is his tax cuts. Who will they benefit? How will it effect the debt? Trumps tax plan is expected to be the lowest cut in history. Claiming to be "for the working American". Based on Ronald Raegan's tax plan, Trump expects this to open up jobs and bring back big businesses. He wants to go to a 7 to 3 bracket. "He also wants to end taxes on capital gains and dividends for everyone making less than $50,000 a year." (The balance.com) 

It's no news to people when I say Donald Trump is rich. He's a business man and knows his way around taxes. So is his tax cut for people like him? Many studies have shown that his tax cuts will significantly lower for the higher payed worker. It is expected to lower 13.5% for the 1% of wealthy Americans. It is also expected to cut the corporate tax rate to 25% from 30%. Now all that sounds awesome except for when you remember that this all applies to 1% of the American population. So what will happen with the middle class? 

The middle class American will receive about a 2% decrease. That seems like nothing compared to the 13.5% cut that the higher class is getting. The Tax Policy Center was quoted as saying, "single parent families would see an increase of their income is between $20,000 to $200,000". Lower class will see a 10-12% increase! And may lose their Medicaid. Overtime this cut will take $1 trillion dollars from Medicaid and 20 million people will be booted off. This tax cut will benefit the ones that do not need it and hurt the ones that do. The rich will not spend fast enough to where the money will end up in the lower classes hands. As for entrepreneurs and small businesses they receive a benefit from the tax cut. 

How will all these cuts affect government spending? Well it won't really at all. If Trump does his tax cuts, builds a border wall as he has discussed, and funding, the debt may increase by $2 trillion dollars. Dan Holler, an economist, said "the federal government has a spending problem not a revenue problem". Which really applies to the Raegan presidency. However, according to Trumps plan he plans on spending less on Medicaid and using that money to go to the military. And using the the tax cut money to make the things he desires. No major jump of government spending. Trickle Down Economics theory is that the wealthy will spend spend spend and that money will trickle down to lower wage people. And if that happens we could see a dramatic difference with the national debt. 


Coming from a single parent home I was very skeptical about this, however, if everyone does their job in this system I do not see how it could be an issue. The Raegan and Bush years are years people cannot stop talking about. Their systems have been repeated and reused multiple times, so they must have done something right.