Here are the True Guts of the Republican Tax Reform Bill. Whether you are on the low side or the high side of the income tax bracket, there seems to be a little something for everyone, despite the fact that there are questionable areas in the tax reform bill. Take a look at the highlights below and decide for yourself.
The gives and takes of the Republican tax reform bill
As you can imagine, not a single Democratic Senator is voting in support of the tax reform bill which Republicans in the House and Senate have finalized. One of the largest complaints about the bill is that the rich are getting bigger tax breaks than the middle to low class.
However, it is not necessarily the rich, but businesses that are getting the huge break, with a current tax burden of 35% being cut to only 21%. As expenditures increase, this lowering of tax income for America is expected to push the Federal Deficit 1 trillion dollars higher than it is, according to the government's own Congressional Joint Committee On Taxation.
The remaining true guts of the tax reform bill is as follows: the $1000 Child Tax Credit will be increased to $2000, helping low-income families. The standard deduction for individuals increases from $6,350 to $12,000, greatly lowering their tax burden even with a small 2% increase in low to middle-income wage earners. The married deduction increases from $12,700 to $24000, however, there will no longer be personal exemptions allowed for individuals, nor the $4,050 deduction for qualified dependents, such as those you care for in your home.
87 million people under an income of $200,000 may see a tax increase by 2027, as the tax cuts go cold after 2025. Meanwhile, anyone above $200,000 will continue to enjoy their tax cuts.
These changes greatly help everyone, but instead of making the Corporate tax break limited, they instead made the middle-class tax break limited, putting the bill in question for many Democrats that have poor constituents.
Other parts of the new tax code are holding back Democratic Senate votes as well, such as the new non-tax related provision for a 'competitive oil & gas program' at the northernmost tip of the Arctic National Wildlife Refuge on Alaska's north slope. Mortgage interest deductions have been lowered a quarter million dollars to $750,000 from 1 million.
On CNN this morning, Tenn Republican Representative Diane Black gave this analogy, that the new tax reform bill is "a rising tide that raises all ships". She also stated that "when companies grow, employees do better", supporting the huge Corporate tax cut. Chris Cuomo charged back saying, "we've seen that said, but not happen", and "maybes shouldn't be promised as certainties". This is a legitimate argument. Republicans state wages will go up with the Corporate tax cut, but in reality, Republicans are fighting hard to defeat a national fair wage income increase to $15. Some states have been smart enough to invoke this wage, and have reaped the benefits for doing so. Just look at their state budgets for the next year!
Another let down in the Republican tax reform bill is the elimination of the Personal Casualty Loss deductions. Only federally declared disaster-related expenses will be given deductions now. However, those who suffered in 2017 from hurricanes and the fires out west will remain under the old provision. College tuition waivers went from being taxed in the House bill to untaxed in the Senate and final bill. Employee fringe benefits will now be taxable, excluding store related benefits, such as clothing, or a percentage given off merchandise.
Very important to Roe Vs. Wade supporters is that the College Tuition Savings account provision for unborn children has been dropped from the tax reform bill, which would have given a legal base to overturn the infamous decision.
Another way to help the rich has been included, giving private jet passengers an exemption from a ticket tax, which any commercial flying passenger is responsible for. There will be no elimination of the SE tax, nor will employees of SE businesses be allowed to write off work-related expenses according to this bill. Last of all in my important list of provisions, is that the Johnson Amendment will not be waived.
Which side of the aisle do you stand on now?
I ask you to dig deep into your soul to figure out your true feelings about this tax bill, without being extreme and ignoring facts. My personal stance is across both aisles. I see trouble in this bill for sure, especially in the huge tax cuts for Corporations which will allow them to just reinvest in themselves, their business, and the stock market.
Republicans love the 'trickle down' theory, but there is solid proof from the Reagan era, that this concept of economic growth does not work. Too many businesses pocket the money or use it to make themselves richer, with no help for their employees. However, I see positives in this bill for the middle to lower income bracket in the fact that there are major tax cuts for them as well with the increased standard deduction and the increased child tax credit. Yes, the lowest income bracket is now paying a 10% tax, but the deduction will erase that tax for most under $10,000 of income. Democrats have failed to point that out. My stance is that I wouldn't vote yes on the bill at the moment, but if changes were made to the Corporate tax cut, I would consider voting yes.
