Taxes

Project 2025 will...

  • ...move from the current 7 income tax brackets ranging from 10%-37% to a two bracket system with flat rates of 15% and 30% (with 30% starting around the Social Security wage base of $168,100) and eliminate most deductions, credits and exclusions. Millions of low- and middle-class households would likely face significantly higher taxes. [696]

    He estimated that a middle-class family with two children and an annual income of $100,000 would pay $2,600 in additional federal income tax if they faced a 15% flat tax on their income due to the loss of the 10% and 12% tax brackets. If the Child Tax Credit were also eliminated, they would pay an additional $6,600 compared with today's tax system, Duke said.

    By comparison, a married couple with two children and earnings of $5 million a year would enjoy a $325,000 tax cut, he estimated.

    "That 15% bracket is a very big deal in terms of raising taxes on middle-class families," Duke said.
    [link]
  • ...reduce the corporate tax rate even further to 18%. Donald Trump's 2017 tax law cut the corporate tax rate from 35% to 21%, which meant companies paid $240 billion less in taxes from 2018 to 2021 than they would have paid. This further reduction would lead to even higher corporate profits and even lower government revenue to pay for services for the American people, while also increasing the deficit. [696]
  • ...reduce the capital gains rate from 20% to 15%. This would disproportionately benefit the wealthy and lead to a loss of government revenue. [696]
  • ...consider the introduction of a consumption tax, such as a national sales tax. This means that everything you buy will have an additional tax on it. [698]
  • ...tax employers on workplace benefits that exceed $12,000 per worker annually. This would lead to employers cutting back on these benefits and workers paying more taxes, and would be damaging for millions of families who rely on one working adult's employer-provided health insurance to cover dependents, such as children. [697]

    If this tax was enacted, we estimate that just based on health insurance benefits in 2022 alone: (1) More than 15 million workers would have seen their benefits taxed. (2) Their taxes would have risen by more than $12 billion if employers shifted away from benefits to other forms of taxable compensation. [link]

with someone who may be affected by Project 2025 if Trump is elected.

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