Tax Cuts Almost Done
To the Editor,
Republican House and Senate approved their tax cuts. Now they must agreement. You can still voice your opinion. Good news! In the Senate bill, you can write-off personal use of your private jet. Corporations get permanent tax deduction, no provisions or penalties to not bring jobs back to the US. Left in the territorial tax system, an incentive to go or stay overseas. Almost no reform, leaving Corporations that paid no or little taxes in the past to continuing to do so. Republican tax reform is being rushed through Congress at historical record speed during busy holiday season with no public input. Some of what is in the bills affecting the next 10 years: The bill adds $1.4 Trillion to the federal debt (not including increased interest rate debt), a debt that will be paid by the poor and middle classes in future tax increases and spending cuts to Social Security, Medicare, Medicaid, and other social program. Eliminates deductions for medical expenses hitting older workers, retirees, terminally ill, and disabled. Senate bill basically ends Affordable Care Act (ACA Obamacare.) 1/3 of bankruptcies since 1980’s until ACA were for medical expenses. ACA reduced the number of medical bankruptcies. Limits mortgage interest and property tax deductions. Eliminates state and local taxes and student loan interest deductions. Reduces aid for school lunch programs, Meals on Wheels, etc. May discourage charity giving due to tax filing shift. Most people will initially see a lower tax bill in 2019 to support 2018 and 2020 elections, except 30% of those making $75,000 or less. Some income groups, particularly those making $20,000 to $75,000 will see tax increases in future years. Eliminates teacher deduction for school item purchases, effectively raising teachers’ taxes by $2 Billion.
Only 5 Corporations have said they may hire more people. Rest said savings to go for Executive salaries, stockholders, and stock buy-back. These cuts plus others made to give the wealthiest 1%, especially top 1/10th of 1%, and Corporations a huge tax break. Today, 1/10 of 1% owns more than the bottom 77%. Estimated that Trump family and businesses will save $1 Billion in taxes in 10 years. This tax plan is another gamble, like Reagan’s and Bush II’s, that the economy will grow faster (.4% to .8%) than it has since Obama helped turn around economy in 2010, even though technology and innovation continue to eliminate workers’ jobs.
(previous area resident)