Have you read all 515 pages of the Republican tax plan? Yes, it will cut taxes, but read the “fine print.”
This tax plan will increase our federal debt of $20.5 trillion to $22 trillion in 10 years.
The federal estate tax will drop from 40 percent to zero. This estate tax cut only benefits the top 0.2 percent of taxpayers. That’s not the top 2 percent, but 0.2 percent. And this doesn’t count a $4 billion reduction in private charitable giving, according to the nonpartisan Tax Policy Center.
Churches will now be able to legally endorse political candidates using tax-deductible contributions.
The standard deduction will be increased by $11,300 for married couples, but the personal exemption of $4,050 ($16,200 for a family of four) will be eliminated. And the additional standard deduction of $1,250 for seniors over 65 will be eliminated.
The child tax credit will increase from $1,000 to $2,000 (Senate version). There will be a $300 tax credit for parents and non-child dependents (think grandparents or disabled children over 17) but it will end in 2023.
If you make less than $18,650 (married), your tax rate would actually increase from 10 percent to 12 percent (House version).
Tax deductions eliminated: interest on home loans from $500,000 to $1 million (House version), interest on loans for a second home, interest on student loans, state and local income taxes (Senate version), moving expenses and medical expenses over 7 percent of income.
Free employer educational benefits and free tuition for college research assistants will now be taxable.
Will this tax plan raise or lower your taxes?
Turn off your TV, or if you’re under 30 put down your cell phone, and do your homework before you call/email your members in Congress on what may be the most important legislation in Trump’s presidency.