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Trump’s Tax Ideas Could Affect Homeowners, Older Adults And Middle Class

During the election campaign, Donald Trump proposed several changes to federal tax policy. (Joshua Lott/The Washington Post)

By Julie Zauzmer Weil

Social Security recipients, people who earn tips and many businesses could see lower IRS bills if all of Donald Trump’s tax policy ideas come to fruition. But they could punch a big hole in the federal budget.

Overall, Trump’s agenda has been forecast to increase the national debt by $7.75 trillion through 2035. Here’s how his plans would affect specific groups of taxpayers, and — according to estimates from the Yale Budget Lab, the Committee for a Responsible Federal Budget and the Tax Foundation — what they would cost.

Parents

During his first term, Trump doubled the child tax credit from a maximum of $1,000 per child to $2,000 per child as part of his landmark 2017 tax law. That expanded credit is set to expire in 2025. While his running mate, Sen. JD Vance (R-Ohio), endorsed an even larger child tax credit, Trump’s campaign said he would like to extend the $2,000 credit.

Older adults

In remarks made on the campaign trail, Trump said no one should pay taxes on Social Security benefits. Now, about 40 percent of seniors do — mostly because they have other income that boosts their earnings above $25,000 per year for an individual or $32,000 per year for a married couple. Trump’s idea is costly: It would reduce revenue by about $1 trillion over 10 years, according to estimates. And since taxes on Social Security go back into the program’s trust fund, his plan would hasten the depletion of the fund — which is projected to run out of money in about a decade, triggering automatic across-the-board cuts in benefits.

Faith Based Events

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