This is in response to the editorial on Nov. 5, because if anything needs a rebuttal, that editorial does.
Now, I like a good tax cut as much as the next guy, but this GOP-sponsored tax bill is anything but a good tax cut, unless, of course, you’re rich.
To start with, the tax brackets have been reduced to 4. That means, say, you were in the 10 percent tax bracket, the lowest currently, you now joined the 12 percent tax bracket. That’s a tax increase no matter how you look at it. If you itemize, you will get a tax increase. Yep, can’t deduct your state and local taxes any longer. You are also limited to $10,000 of property tax deduction.
Pay more than $10,000? Only deduct 10K.
No more mortgage interest deduction either.
However, if you send your children to a private school, the entire tuition is deductible. I’m sure most of The Leader-Herald readers can afford to send their children to private schools.
But, if not, and you send your kids to public school, no deduction. Think that helps the rich or the average American? School supplies deductions are limited to $250. Still not sure if this tax bill is for the rich? Here’s one for all you Leader-Herald readers: there’s a provision in the GOP tax bill to allow deductions to all golf course owners. Anybody out there know a golf course owner? Maybe a rich president?
The inheritance tax is removed. Currently it’s at $5.5 million. I wonder who will benefit from that one?
The biggest omission of them all? By 2028, a scant 10 years from now, all of us will be paying more in taxes, itemize or not. According to the CBO.
In another omission is about the corporate tax. Yes, it’s at 35 percent, but only a handful of companies pay that much. The average corporate tax rate is 18.6 percent. My tax rate last year was 17 percent. Do you think corporations can afford 1.6 percent more than me? And forget the big oil companies, which paid nothing in federal taxes in 2016. Don’t know about 2017 yet.
The editorial mentions how the corporate tax rate is the highest in the industrialized world. It doesn’t mention that we have about the lowest unemployment rate of that same industrialized world. So much for hurting jobs growth.
What about the wage stagnation? Only 2.4 percent for the last year. Do not be fooled into believing that the rich will pass down any savings. The trickle down theory didn’t work for Reagan, it will not work now. Unless, of course, you build private jets or yachts.
Here’s the real kicker. If the deficit balloons too much, and boy will it, there a provision that allows our GOP representatives to come after our Medicare, Social Security and welfare. No mention of lowering the military spending.
This is a thinly disguised tax cut for the rich, with a small bone thrown in for us little guys.
JOHN H. SWARTZ