On the new tax proposal
Doubling the standard deduction and the elimination of personal exemptions is, at best, a breakeven scenario for a large number of taxpayers. The 10 percent tax rate is now 12 percent and until taxpayers in the 15 percent bracket for incremental income, break through that threshold, savings are negative. This is particularly true if taxpayers can itemize expenses. Look at the proposed law and the tax tables to see where you fall. Some may gain, but many will likely pay more.
The intent was to reduce corporate taxes and overall, simplify and reduce the tax burden on middle income taxpayers as well. Reducing corporate taxes to bring jobs back to the U.S. is a supportable argument. But this proposal does little to simplify taxes and for many taxpayers, will not reduce their preparation or payment burden. Politicians who insist that we will all benefit are misrepresenting the situation and those caught in the lie will — and should — lose support.
Most importantly, the U.S. is steeped in debt and interest payments. So politicians insist on “revenue neutrality,” raising taxes on one group to pay for cuts to the other. In truth, tax cuts should be accompanied by like amounts cut from spending. Unless those costs are cut, our taxes, our kid’s taxes and their kid’s, will never go down. This proposal will be paid, unfortunately, by middle income baby boomers, many who are already retired. For those just on the brink of retirement – join the party. It’s on you too.
This year’s Affordable Care Act open enrollment period started Nov. 1. Millions of Americans will soon visit HealthCare.gov or the... read more