A Michigan State University economist says he believes President Donald Trump’s proposed tax plan would not be a good replacement to the current system.
Professor Charles Ballard says the plan would hurt Michigan by eliminating deductions for state and local taxes. But it would also benefit wealthier taxpayers the most.
“It’s not like one thing or the other. It depends very much on your particular situation and the particulars of your financial life." Ballard says. "But if we can back away from that, the big thing that it does is it gives very big tax cuts to those at the top and really doesn’t do a whole for most citizens.”
Ballard says that historically, tax cuts for the wealthy do not benefit lower-income individuals.
If the tax reform stands a chance of being passed, Ballard says Republicans need to keep the focus on assertions that it will help the average family.
“There isn’t much public support for tax cuts generally and there certainly is not public support for tax cuts for those at the top. And in fact, most citizens want tax increases for those at the top. This does exactly the opposite. So if the public comes to understand what this really is, that makes it hard to get it passed.” Ballard says.
The Senate Budget Committee will vote on the plan next week.