This article was last updated on October 18
The title of this article is from a reader (Barry P.) who had this comment on Trump’s proposed tax reforms:
I live in Massachusetts and make $61,000.00 annually. I own a home and pay mortgage interest of around $12,000 dollars. My state income taxes and property taxes amount to another $8,000. So my itemized deduction is around $20,000. [Under President Trump’s tax plans] This is to be replaced with a 12,000.00 personal exemption? My taxes are going up clearly, not down. [Looks like this] tax increase is to give a tax cut to mostly 1% of the population. I like Donald Trump but I will drop him like a hot potato if he raises my taxes!
I am sure that his overall point reflects that of the many millions of Americans who voted for Donald Trump in hopes that he will create an economic and regulatory environment to improve their financial fortunes. If Trump’s tax plan fails like his Obamacare repeal efforts then voters will rapidly turn on him and the Republican controlled congress. What’s worse is that it will allow folks like Steve Bannon and co. to reassert their populist message of “draining the swamp,” which creates more national division without any real solutions.
Here are some other commenter’s views [good and bad] on Trump’s proposed tax reforms:
This tax plan is a catastrophe for the middle class and most small business owners. It eliminates the personal exemption so any families with children will end up with a HIGHER tax liability even with the doubling of the standard deduction. Small businesses set up as pass through entities will also have a MAJOR increase in taxes because the new plan sets a flat rate of 25% on all pass through entity income. This will benefit only the two or three percent at the very top; the vast majority of small businesses have an effective tax rate, under present law, far below 25%. Indeed, if these small businesses are now to be taxed at 25% on their pass through income it will have a catastrophic effect on the economy. [Marco]
I am expecting my taxes to go up. I am single and my itemizations were > $25K last year so the new standard deduction for a single doesn’t help. So I lose many deductions and the personal exemption. I voted for Trump but unless that 10% tax bracket covers a large range of incomes, I’m in deep doo-doo. [Rochelle]
As a working class person myself, I am personally sick and tired of paying for lowlife s and deadbeat and lazy people that are able to work. I’m also sick of these young kids and adults taking advantage of the government but really the government is giving them everything and not the working class people, I think we should get a stimulus package . We deserve something, I for 1 am sick of going to work everyday dealing with bulls*&t and idiots but guess what , I have morals and bills to pay for, I’m sick of being taxed every week out of my check and also taxed the hell out of on my income taxes, you have money. Mr Trump so if you going to do something stand up and be a real man and give us working class people something and also let’s tax people by what their income is , how about that. Thank you [Amy Redmond]
No name calling, no politics. Trump’s plan will save everyone in the lower income brackets some tax money. We’ve got to stop comparing everything to people in other tax brackets especially to the rich and super rich. They pay the highest rates (%) on the majority of their income, and any amount of refund has absolutely no bearing on anything either. They pay the same rate on the same lower amount of income that we do, then they pay higher and higher percentages as their income goes up. If they over paid they get a refund, if they underpaid they pay the balance owed and even add a penalty. In any case the rich pay more in taxes than the average person and they also pay a higher percentage on their total than the average person. The politicians and the media that are against any new tax law are only spewing rhetoric and confusion to get us to make our decisions on their political views rather than pushing for any kind of fair tax system. Talk to an accountant if you don’t understand it as a favorable position for you. Ignore the rhetoric and politics on the subject [Neal S]
What do you think of the President’s latest tax reforms and tax cuts? How important is Trump’s overall agenda of change to you relative to the possibility of being hit with higher taxes in 2018 and beyond?