St. Croix, USVI

loader-image
St. Croix
9:50 pm, Aug 21, 2025
temperature icon 84°F

Trump warns of 68% tax hike if budget bill fails. Not true, say experts 

US President Donald Trump has been sounding an alarm: if Congress doesn’t pass his tax and spending bill, Americans will be forced to pay much higher taxes.

Referring to his wide-ranging tax and spending legislation called the “One Big Beautiful Bill Act,” Trump said in a June 5 Truth Social post, “If this bill doesn’t pass, there will be a 68% tax increase.”

Trump cited the same figure in May 25 comments to reporters and during a May 30 news conference.

However, independent analyses of the controversial bill – which would extend the 2017 tax cuts that are slated to expire later this year – found that Trump’s estimate is about 10 times bigger than the expected increase would be if the cuts expire.

The budget bill has caused a split between Trump and his close aide, Elon Musk, who called it a “disgusting abomination”.

The White House did not respond to an inquiry for this article.

How much would taxes be expected to increase?

Republicans have largely advocated for extending the full 2017 law. Democrats – including the party’s 2024 presidential nominee, then-Vice President Kamala Harris – have generally supported extending the lower tax rates only for families earning up to $400,000 a year.

Advertisement

If the 2017 tax bill sunsets, taxes would rise for most taxpayers. But the Urban Institute-Brookings Institution Tax Policy Center, a nonpartisan think tank, has estimated, on average, Americans’ taxes would rise by about 7.5 percent if the 2017 tax cuts fully expired, not 68 percent.

The Tax Policy Center didn’t find any single income group, whether lower-income or higher-income, that would see a 68 percent tax hit if the law expired.

Taxpayers earning up to $34,600 could expect a nearly 12 percent increase, and taxpayers earning $67,000 and up could expect a 7 percent to 8 percent increase.

Taxes would rise for all income groups if the bill fails, but not by the 68 percent

The centre-right Tax Foundation hasn’t calculated an estimate, but the group made broadly similar projections as the Tax Policy Center, said Garrett Watson, the Tax Foundation’s director of policy analysis. Watson said the 68 percent figure is much higher than estimates he has seen from credible experts.

It’s possible that Trump’s 68 percent figure is a garbled reference to a separate statistic, tax experts said.

The Tax Policy Center estimated that just over 64 percent of taxpayers would see taxes increase if the law expires. That percentage varies based on the household income. Many low-income households would see no change, often because they don’t earn enough to pay federal income taxes. But for households making $67,000 or higher, there’s a roughly 80 percent likelihood of a tax increase.

Similarly, the Tax Foundation said 62 percent of taxpayers would pay higher taxes if the 2017 law lapsed.

Advertisement

None of this, however, means that the increase for the typical taxpayer would be more than 60 percent compared with what they paid in taxes the previous year.

The Republican tax bill generally reduces taxes for lower and middle-income groups while benefitting wealthier taxpayers the most, the Tax Policy Center found.

Those earning $34,600 or less would see their after-tax incomes rise by 0.6 percent if the Republican bill passes, while those earning $67,000 or more would see a 2.8 percent increase. The boost would be even stronger for the top 5 percent of earners, the top 1 percent of earners and the top one-10th of 1 percent of earners.

Higher-income groups would gain more if the 2017 tax law is renewed

A Tax Foundation February analysis found higher gains among all income groups, especially when factoring in expected economic growth from the lower taxes. But the same pattern held – the biggest percentage gains from passing the Republican bill went to the top 5 percent and 1 percent of earners.

Our ruling

Trump said if his “Big Beautiful” tax and spending bill doesn’t pass, “there will be a 68 percent tax increase.”

If the 2017 tax law is not extended, independent analyses show that taxes will increase, but by far less than what Trump said.

The Tax Policy Center projects that the increase would be about 7.5 percent overall. The Tax Foundation broadly agreed with that assessment.

We rate the statement False.

 

Read More

British Caribbean News

Virgin Islands News - News.VI

Share the Post:

Related Posts

Virgin Islands News

Nonprofit Charity Resurrecting Beloved West End Beach Bar

The Loops Foundation is rebuilding, from the ground up, the former Coconuts Restaurant and La Grange Beach Club on the West End beach, which was destroyed by the 2017 hurricanes.

“It’s going pretty fast, so I’m hoping they’ll open by the New Year,” Rudy Seikaly, the Loops founder, told the Source.

The Foundation was started in 2018 to commemorate Seikaly’s late son, Chris, a musician and artist known as “Loops,” who passed seven years ago. The foundation’s mission is “to empower communities through the arts, technology and education” following Chris’s values of love, creativity, integrity and perseverance.

“This is a legacy project for me in memory of my son, whom I lost at a young age. He went by the artist name Loops.”

The new building will be roughly the same size, with the kitchen and bar on the ground level and a rooftop deck to enjoy the sea view. The patio on the south side will be covered with tables and umbrellas.

Seikaly envisions the food as Mediterranean or a combination of Lebanese and Caribbean. He said he wants it to become the “top local spot where everybody wants to go hang out.”

The Loops Restaurant is on the beachfront across the street from the property Seikaly fenced recently to be used by Ruff Start Rescue for their monthly community dog care clinics.

The civil engineer also purchased more than 13 acres to construct a Loops Village.

The village will comprise several residences, a school, a robotics school, an amphitheater for music and lots of gardens. He said the village should employ 850 people or more to construct and can become a template for villages he would like to build elsewhere in the world.

“This is more a social justice project. While it will have for profit businesses so it is sustainable and provides employment, it will be mostly the social justice work that we want to do,” he said.

Seikaly, a civil engineer originally, came to Puerto Rico and the Virgin Islands after the 2017 hurricanes to advise about rebuilding schools and hospitals. He ended up with a contract to rebuild the Arthur Richards School, the first reconstruction on St. Croix. Only local contractors are being used, so the money stays here.

In the past, Seikaly helped rebuild Beirut after the war in 2006. The organization has supported art and music therapy for children, internet and technology in underserved areas and education and mental health programs for at-risk children.

Some of the worldwide programs supported by the Loops Foundation included a hospital in Sinai, a digital library in El Salvador, tuition assistance for teachers and students in Lebanon, and traumatized youth in Washington, D.C.

“So there’s a lot of stuff that we do all over the world that we want to try to bring here. It’s mostly community support,” Seikaly said.

Read More
Virgin Islands News

Gittens Files Bill to Expand Ethics Complaint Window

When a staffer filed a sexual harassment complaint in March against Sen. Angel Bolques Jr., the expectation was that the Legislature’s Ethical Conduct Committee would review the allegations and deliver a finding. Instead, the case laid bare a weakness in the Legislature’s own rule book: a 60-day filing deadline that stopped the committee from considering some of the most serious claims.
Senators have stated that to protect the employee, they were unable to release the full complaint, though in press releases, the Ethics Committee has said it included allegations of financial mismanagement and creating a hostile work environment, among other things. Rule 810(e) limits the Ethical Conduct Committee to complaints filed within two months of the alleged misconduct, and that restriction put some of the more serious claims out of reach, including at least one incident they said had occurred about six months prior to the filing.
With the scope narrowed, Bolques entered a no-contest plea on July 24 to a single charge — violation of his oath of office — sidestepping the broader accusations.
The full Senate took up the committee’s recommendation for a reprimand in mid-August, but added, on a 7–6 vote, a suspension without pay for 30 working days. Fifteen of those days take effect immediately; the other half are held in abeyance through the end of the year, provided Bolques complies with Senate rules. If he violates the rules again before Dec. 31, the remaining suspension — which Bolques is challenging — will be enforced.
The Legislature’s rules outline how the process is supposed to work. Any person may submit a sworn complaint, but it generally must be filed within 60 days of the alleged violation. If the complainant could not reasonably have known of the conduct within that time, the rules extend the window to 18 months.
Complaints filed within 30 days of an election are returned and may be refiled once the election passes. When probable cause is found, the committee issues a statement of alleged violations, and a disciplinary hearing must be held within 60 days. Afterward, the full Senate has 15 business days to act on the committee’s recommendation, which can range from dismissal to reprimand, suspension, censure, or expulsion. Interestingly, sexual-harassment complaints appear to be handled separately under the Legislature’s harassment policy rather than Rule 810’s deadlines.
Following the Bolques case, committee Chair Sen. Kenneth Gittens told the Source that the 60-day filing rule had “time-barred” the committee from investigating some of the most serious allegations.
“The CEC determined that we were unable to pursue the more serious allegations due to the time limitation outlined in Rule 810(f), which states that ‘a complaint may not be filed more than 60 days after the date of the alleged violation,’” he said Thursday. “After a thorough review, a majority of the CEC members agreed that this restriction unduly limits our oversight responsibilities. As chairman, I submitted an amendment on Aug. five to revise Rule 810(f), allowing the Committee to consider any complaint filed during the current legislative term and up to 60 days into the next term. This change is necessary to ensure that accountability is not obstructed by procedural technicalities.”
Senate President Milton Potter, in a call with the Source, further described the clause as a “loophole” that needed closing. Potter emphasized that the restriction undermines the Legislature’s own oversight function, and said senators were in agreement that reform was necessary. He also pointed out that, under the Senate’s rules, the Ethics Committee can only recommend sanctions; the final word rests with the full body. That balance, he said, should remain — but without technicalities preventing senators from considering the full weight of complaints brought before them.

Read More