On Wednesday, the Trump administration proposed the “biggest tax cut” in U.S. history for individuals and businesses, as well as a plan for simplifying the tax code that would impact just about every American.
For individuals, there will likely be three tax brackets (35, 25, and 10 percent) instead of seven brackets. Standard deductions will be doubled, and every deduction with the exception of mortgage interest and charitable donations plan on being cut. For businesses and corporations, the tax rate will be reduced to 15 percent from 35 percent.
This is huge for millennials, according to economist Peter Morici. In an interview with Red Alert Politics, Morici said that young adults between the ages of 18-29 will finally see the fruits of their labor.
“A much lower corporate rate would create a lot more job opportunities,” Morici explained. “That would benefit them most. A lot of those jobs would go to young people.”
When asked about how Trump’s tax proposal will impact young adults working two or three jobs to pay off student debt, Morici believes it will diminish, but not completely go away.
“We have two basic problems with young people. One is that the economy is growing too slowly and if we can get growth up to 3 percent there’ll be a lot more jobs,” he said. “The second problem is that many of them are not well prepared for the kinds of jobs that are opening.”
A recent poll from the National Association of Home Builders found that almost no millennials between 18-25 are interested in a career in construction, which is a high-paying profession.
So, while the Trump administration is making great strides to help millennials, young adults have to meet the administration halfway if they’re going to see upward economic mobility.
Listen to the entire conversation with Peter Morici (Twitter: @pmorici1) below: