MAGA · Politics · Tax Cuts · Uncategorized

Much Needed Middleclass Tax Cuts

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Anyone that tells you the proposed tax cuts are only for the wealthy is lying to you.  Quite the opposite is actually the case.  The proposed tax law changes would let middle class taxpayers bring more of their paycheck home every week.

Every taxpayer has the option of taking a standard deduction of a set amount. Or they have the option to itemize their deductions.  By filling out IRS Schedule A taxpayers provide a list of actual amounts paid for qualified deductions.  If actual expense are more than the standard deductions folks itemize. If not, they take the standard deduction.

Medical expenses above a certain percentage of income, state and local taxes paid, mortgage interest, charitable contributions and other miscellaneous items are now qualified deductions.  Mortgage interest and charitable contributions make up a material amount of total deductions.

Proposed tax cuts would double the standard deduction.  It would take away itemized deduction option while allowing taxpayers to deduct mortgage interest and charitable contributions.  Look at your tax return.  Did you itemize?  If so, subtract mortgage interest and contributions from total itemized deductions.  If that number is less than the standard deduction doubled you will pay less taxes.

The very wealthy could actually pay more taxes even if rate has a slight decrease.  With loopholes and option of taking excessive deductions far exceeding the average income of taxpayers, the taxable income will be much more.  In other words, 15% of 100 is 15. 10% of 200 is 20.

Child care tax credits reduce taxes paid.  The proposed increase to the child care tax credit would reduce taxes for working parents.

First of all not all corporations are profitable.  Not all of those that are making money are making a bundle.  All corporations are owned by people.  All corporations are in the business of making money.  So when those corporations who are doing well have to pay 35% of income to the Federal government here at home or move to China where they will only have to pay 15% to the China.

The proposed cut to corporate rates will make it possible for those who moved operations to another country to come home.  Companies doing well enough to leave in the first place generally need many employees.  Upon their return to the USA they will be providing good jobs.