Editors' pick: Originally published Nov. 14.Donald Trump's tax cut might ruin your credit rating.
Trump made his tax cut a centerpiece of his presidential campaign. Although the exact policy has shifted numerous times since the primaries, thePresident-elect Trump has consistently promised sweeping cuts for all Americans. The last president to run on a similar platform was George W. Bush, who made passage of his tax policies a priority for his early administration.
If Trump does the same thing, it's possible, if not likely, that his tax cuts will become law within the first several months of 2017. Although it's difficult to evaluate a shifting policy, we can make an educated guess from Trump's latest proposals.
And they'll be expensive.
According to most analyses, in their current form the Trump cuts would cost approximately $6.2 trillion over the next decade. With interest they will add $7.2 trillion total to the deficit, an increase of nearly 40%.
For the average taxpayer, this will create two concerns. First, few Americans who don't own their own business will see a meaningful increase in their take-home earnings. This is at odds with both Trump's rhetoric on the campaign trail as well as the expectations of his supporters, approximately half of whom reportedly expect him to raise taxes on the wealthy.
As explained by Howard Gleckman of the Tax Policy Center, in fact the planned cuts will direct almost all of their benefits to the top 1% to 10% of earners.