“We needed a Pinochet, we got a guy who raised taxes on the Middle Class and let the Banksters from GOLDMAN SACHS run amok.”
exactly.
it’s interesting to me that i haven’t heard one congress critter oppose this bill on the grounds of its evisceration of the middle class. where are the folks that we elected to represent us? oh, that’s right, we are only given lip service at re-election time.
In this tax bill the elimination of most of the itemized deductions should be a deal killer to all those of our duly elected to represent us who vote them into office, and should not represent a thank you gift to those corporations who donate the fattest envelopes to their re-election campaigns.
so just as the cost of obamacare was being shouldered by all the healthy young people who had to sign up or pay a fine, this tax bill is being paid for by the average middle class taxpayer for the benefit of big permanent tax cuts for corporations and the wealthy.
Touting this as a tax cut to all the middle class deplorables who elected Trump is the same as obama promising that you would save $2500 on your insurance premiums and could keep your doctor. This isn’t a tax cut, but a tax increase for the average American.
the standard deduction is being not quite doubled [for individuals, it would go from $6,350 to $12,000, and for married joint filers, it raises that deduction from $12,700 to $24,000], but then they are eliminating the individual personal deductions [of $4,050 per person] for yourself, your spouse and your dependents; thereby, reducing the doubled standard deductions real net worth to $7,950 for singles [a real net increase of $1,600 from existing std deduction] and to $15,900 for joint filers [a real net increase of $3,900 from the current std deduction].
A couple with 2 children will have their $24,000 doubled standard deduction reduced by $16,200 for a real net reduction of $7,800 with the loss of the personal deductions. so they give with one hand but take away with the other. in addition, they are eliminating the extra deduction for those over 65 or blind.
Now, if you take the standard deduction, you cannot then itemize; therefore, giving up the normal deductions for medical expenses, long term care insurance expenses, state and local taxes, property taxes [under the senate bill], mortgage interest deduction limits, student loan interest deductions, moving expenses, alimony, dependent care assistance accounts, casualty and theft losses, unreimbursed job expenses and tax preparation fees.
the corporations permanent tax rate cut is being sold as a job creator. i would assume that most businesses expand and hire when more people buy the product that they sell. and, i would assume, that a large portion of our economy is driven by middle class consumers.
so since these middle class consumers will now have less money in their pocket after tax day, April 15, because their taxes are going up to offset the corporate rate reductions, where will the increased demand for a company’s products come from that is supposed to lead to job creation and drive increased hiring by corporations?
What % of earners (families) in the $30k to $70k range (2016 AGI, or adjusted for inflation for previous years) itemize? Those who do not or now will not itemize are a tremendous number of taxpayers. I am squarely in the middle of that pack, have been most of my life, and not once has itemizing been more beneficial, so I always took the std. deduction.
My family and others like it gain from the above (yes, we do own our own modest home, in a relatively high prop. tax state), plus rates lower, and the child tax credit is expanded, I believe. (Lord, I wish the CTC was greatly simplified.)
The thing is, I’d have settled for little gain or perhaps even slightly higher Fed. taxes, in return for a 50% reduction in the size of the Tax Code, which is DESPERATELY needed, especially for us Schedule C (plus related forms & schedules) filers, instead of all this social engineering via high rates and then loopholes for almost every conceivable circumstance.
I don’t think a significant simplification of the Tax Code was achieved, unless someone can show me it has...