Many are confused by the lies of the media and the politicians regarding the impact of the tax reforms contained in the Tax Cuts and Jobs Act (TCJA).
Their lies are based on their ideology, not on economic reality:
- The ideology of Big Government vs. the Individual
- The ideology of Business vs. the Individual
- The ideology of the Washington Elite vs. the Individual
They falsely claim the new tax reform law will benefit the wealthy at the expense of the middle class…
At least 80% of taxpayers don’t believe they’ll receive a tax cut – they’ve been misled.
But slowly the truth is getting out…
CBS asked 3 families in different circumstances from 3 different parts of the country to submit their tax returns from last year. Then they had an accountant calculate how the new tax law would affect their tax bill in 2018. The results may surprise you. Watch the 4 ½ -minute video below:
But the liberal media is telling you … social media is telling you … and progressive politicians are telling you just the opposite.
Because they want you to think that THEY care about the middle class and President Trump doesn’t.
They want you to think – as they have claimed repeatedly – that President Trump only wants to use his position to enrich himself and his businesses.
But here are the economic facts:
- The TCJA will have no effect on the taxes you pay this year for your 2017 income.
While the TCJA will increase your paychecks by lowering your federal withholding, the changes in how your tax return is prepared will not go into effect until you file your 2018 tax return in 2019.
- The tax reform bill will increase the 2018 after-tax incomes of taxpayers in every tax bracket.
- Not a single Democrat in Congress voted for the tax reform bill – not even one!
- While some very wealthy individual taxpayers may owe more tax for 2018 – President Trump has admitted that he’s one of them – at least 80% of Americans will receive a tax cut.
- The new law will generate at least 339,000 new jobs and at least $600 billion in new tax revenue.
- The Child Tax Credit is doubled from $1000 to $2000 for dependent children under the age of 17.
The refundable portion of the credit increases to $1400. This means if you owe no tax – or if your tax is less than $1400 – you still are due a “refund” of up to $1400.
Also, the phase out – the income level above which the credit is reduced or eliminated – is now more than double what it used to be.
- The standard deduction increases to $12,000 for single taxpayers, $18,000 for single-parent heads of household, and $24,000 for married couples.
Fewer taxpayers will need to itemize deductions under the TCJA. This will greatly simplify the tax preparation and filing process for many taxpayers.
- The TCJA eliminates the marriage penalty for 5 of the 7 income tax brackets plus the marriage penalty for the Alternative Minimum Tax (AMT).
- Starting in 2019, the Obamacare individual mandate penalty for health insurance will be eliminated.
This will remove the tax penalty imposed on pro-life taxpayers who prefer to not purchase insurance if there are no policies in their states that exclude coverage for abortion.
- The deduction for charitable contributions is retained and even expanded – taxpayers may deduct up to 60% of their adjusted gross income rather than 50%.
- The deduction for state and local taxes is NOT eliminated … but is reduced to $10,000 in combination with property taxes.
This will impact high-income taxpayers in high-tax states such as California, Illinois, New Jersey, New York and Connecticut.
- The tax exclusion from the estate tax – also known as the “death tax” – is doubled to $11.2 million of bequeathed assets.
- Small businesses and entrepreneurs will be able to expand and create new products, new jobs and new opportunities.
- Trillions of dollars of corporate funds that have been moved overseas because of the excessive corporate income tax rate will be coming back to the U.S. – supercharging economic growth.
The final TCJA differed from what President Trump originally advanced, but as a compromise, it’s a move in the right direction.
If you would like more detailed information about these other changes, google “Tax Cuts and Jobs Act.” The articles by the Tax Foundation and by H&R Block are thorough.
The media and politicians won’t admit they’re lying.
But wait and see, as
- The economy grows
- New jobs are added
- Wages spike upward
- You see more money in your pocket this year
- You owe less tax next year
Again, watch the short video above … it will show you the truth.
What do you think? Write me at [email protected]