“Tax cut bill goes public as GOP slashes rates for the wealthy, nixes Obamacare penalty, expands child tax credits, dramatically lowers corporate taxes and opens up new Alaska oil drilling”
I get the gut feeling that the above headline was meant to make the tax bill sound like a bad thing, a terrible thing. But to me it makes it sound just about right.
I would like to see property tax and income tax completely done away with. But at this point I’ll take what I can get. I’m not one of those people who are going to complain when the wealthy get a tax cut. Everyone who pays taxes deserves a tax cut, I don’t care if they are wealthy or not. If this passes and gets rid of the Obamacare mandate I’ll be happier with government than I’ve been in a long time. That is the part of Obamacare that makes me the most angry.
It’s the part that forces people to purchase a product. If Congress passed a law requiring everyone to buy a gun, or a car, or a hamburger, people would go nuts about it. They should equally go nuts over having to buy health care. To get rid of that mandate is one step in fixing the problem. No business has to compete when you are forced to buy their product.
Under this plan most people who pay taxes will see a decrease. A few will see their tax rate left the same. The massive drop in the corporate tax rate will make stocks rise, business to move back to the US, and will likely lead to business expansion as well. It’s from the current rate of 35% down to 21%. That’s substantial. Of course Democrats are calling the bill “awful” and making claim that it will be a disaster of apocalyptic proportions.
One interesting thing of note is that the bill makes the standard deductions double which makes it a benefit to file a 1040EZ instead of itemizing. That means that more people than ever will end up filing a single page, very simple, tax return. No need for an attorney or an H&R Block representative.
- “Top income tax bracket has dropped to 37 per cent from 39.6 per cent
- Other brackets are zero, 12, 22, 24, 32 and 35 per cent
- ‘Standard’ deduction for non-itemizers nearly doubles
Interest is deductible only on the first $750,000 of new home mortgages
- Only individuals making more than $500,000 and couples earning $600,000 are in the top bracket
- Corporate tax rates drop from 35 per cent to 21 per cent
- Deduction for medical expenses and student loan interest and an exemption for graduate school tuition waivers
- Ends Obamacare tax penalty for failing to buy health insurance
Doubles child tax credit to $2,000 for families earning up to $400,000
- $1,400 of child credit is refundable even for families that don’t pay any income tax
- Doubles estate tax exemption to the first $11.2 million of inheritances
- Opens a portion of the Arctic National Wildlife Refuge to oil and gas drilling
- ‘Pass-through’ corporations can deduct 20 per cent of income
Elimination of corporate Alternative Minimum Tax
- No repeal of Johnson Amendment barring churches and religious organizations from election activity”