The Tax Plan

I'm not sure what to make of this Republican tax bill.  I tried one of those online calculators for what was termed the Trump tax cuts for my taxes and I don't think we'll make out real well on it.  It's hard to tell, since I used 2016 income figures  2017 will be a bit different, somewhat less.  I didn't have as many classes, so I made less.  With K's retirement, we lost three months of her income, her social security not kicking in until December.  And I made a little less money from writing in '17.  So, I used last year's numbers.

I know there is an increase of $12,000 in the standard deduction, to $24,000.  But the proposal, at least one of them, eliminates the individual exemptions, $4,100 (or so) a person.  So the three of us will lose more than $12,000.  So much for the help from the standard deduction.  The child credit, for Michael?   One proposal is for a credit of $1,600 per child; the other is only $1,000.  Depending on the credit for children, we'll either come out a wee bit ahead/break even or a wee bit behind. 

I'd assume there are a lot of other folks in my position, too.  Where is this promised income tax reform that will give us guys in the middle, still struggling, a bit of relief?   So, where is this tax cut?

I think if I was a member of Congress, I'd vote "no" because it doesn't give any real relief to a lot of folks, those in the middle.

Also, it seems to me small businesses should not pay a higher tax rate than larger corporation.  And, according to some tax expert on the radio, that's what will happen.  I believe small businesses employ more than the larger ones.  So, the idea that a cut in the corporate tax will result in more hiring doesn't apply to a similar cut for smaller companies, ones who employ more?  So, Salvatore's Pizza will still pay a higher rate than GE?  Of course, I know why and so do you.  Sal can't afford the big donations or to hire lobbyists. 

What I really liked today was Trump saying the only thing Democrats favor is more taxes.  Well, that's not exactly true, but does have a large element of truth.  And didn't Schumer and Pelosi look like real jackasses in their meeting with Trump today?  Oh, wait......  They didn't show!  But inviting in the media with the two empty chairs was great!

Go back and check You Tube speeches of Democrats clamoring for relief for the little guy, for small business owners, for those inheriting those small businesses, etc.  Then why are they, to a person, opposing the current tax plan?  It surely couldn't be that they are against it only because it's a Republican plan, could it?  Nah..... 

Maybe it's that they see what I saw a few paragraphs above.  But I doubt it.  It's not as if they were scrambling to cut our taxes on their own, ever.

There is some concern that the tax cut (for some) will not generate enough in new government revenue, that the deficit will increase.  There's even talk of building in safety nets, to raise taxes automatically if not enough revenue is created through growth.  But it's the same old story, never any talk of cutting spending.  Wasn't last year's government intake the largest in history?  Yet the deficit increased yet again.  Like Ron Reagan said, "We don't have a revenue problem. We have a spending problem."  Indeed we do......