Will the “Tax Cut Plan,” Benefit You?
Tax cut in your future? The simple answer is probably not. Unless your yearly income is over $400,000 or you are already worth several million dollars.
Various plans are being discussed by the House and Senate. But the gist of it is that the wealthiest 2/10 of one percent of all taxpayers will get a $328 billion tax giveaway. Just to get into the top 1% of all taxpayers you have to earn $521,411 a year.
The bottom tax rate currently is 10% but that would rise to 12%, so poor people would in fact get a tax hike. Add to that they the plan wants to reduce or eliminate deductions that you make for your home mortgage payments, charitable deductions, taxes paid to state and local government. The list goes on. Families with more than 2 children would suffer the most as limits would be placed on personal exemptions.
Corporations talk a lot about the burden that the Corporate Income Tax places on their businesses. But in fact at least 90% of corporations are Subchapter S or partnerships. So the income flows through to the shareholders. So a corporate income tax cut would be worth a lot of money to people who own Subchapter S businesses. For example they could be paying 30% on income earned as an individual person. But if President Trumps proposed 15% corporate income tax is enacted into law, that could save them 15% right off the bat. It is estimated that less than 5% of “C” corporations pay income taxes. So much ado about nothing. In fact you may have seen how many multinational corporations have structures their affairs so they pay no tax at all on foreign sourced income. So I would have to agree that there is a great burden for all of these corporations. They all have to pay big bucks to CPA’s and tax lawyers to make sure that they pay no taxes. What a hardship.
Another group claiming hardship is those people who are subject to the Estate Tax. usually a married couple is able to pass along
$10 million to their heirs without any estate tax. Much more if they use various trust instruments. So this tax only affects the top .02percent of all taxpayers in the United States. Believe me they don’t need anymore help from us, they are already doing fine on their own.
The estate tax usually is only 1/6th of the value of the estate. So if you had $1 billion your heirs would still get a very healthy amount.
If we had no estate tax, the Koch Brothers would be able to pass on their $34 billion estate without tax, President Trump would be able to pass on $4 billion. You get the idea here. How much would you get, nothing.
I think that you are starting to get the picture, you will get nothing but less money in your pocket out of the various tax bills being discussed. You should start demanding your own terms in a new tax bill, like each taxpayer can make $20,000 and pay no federal income tax at all. We have lots of money, if we just cut back slightly on our defense spending. Think about it and then call your Member of Congress. I am sure that they will be surprised to hear from you.