Sunday, November 12, 2017

Individual Income Tax Cuts

Trump’s desire to lower Individual Income Taxes on US citizens is valid, but the current Bill is a loser. The Individual Income Tax plan should be put in a separate Bill and should be taken up after the Corporate Tax Cut Bill passes and is signed into law.

 

It should follow the passage of a Spending Cut Bill and be scheduled for 2018 after immigration reform, A good spending cut target would be an immediate $500 Billion drop that requires the elimination of programs and agencies.

 

Eliminating the Personal Exemption is a bad move that ignores the fact that the actual cost of moving out of your parent’s basement is $35,000 a year. Combining the $6000 Standard Deduction and the $4050 Personal Exemption into one $12,000 Standard Deduction only moves the needle a little.

 

The Individual Tax Rate schedule in the House Bill carries a $200,000 top for individuals but the same rate applies to couples at only $260,000 instead of the $400,000 you would expect.

 

Reducing the deductions on Schedule A is also a bad move. These deductions should have been kept and the 10% of Income hurdle for Medical costs should have been eliminated so that all out-of-pocket medical costs can be included as deductions.

 

Those taxpayers who claim the “Standard Deduction” should still be able to file their taxes on a postcard, but those who use deductions should keep all of them and then some

 

Removing the State and Local Tax Deductions was a cute stunt to slam the Democrats, but it isn’t worth risking the fate of the Corporate Tax Bill.

 

Increasing the Child Tax Credit should be tabled. This bad idea resulted in more tax fraud than is imaginable, when illegal immigrants claimed all of the family members they have living in Mexico. Most single and working moms have grandma watching the grandkids. We want all of these US citizens to get manufacturing jobs and other higher paying jobs to lift themselves out of these welfare systems. (See Corporate Tax Cut)

 

Eliminating the Inheritance Tax is a must. These family businesses are the backbone of the US Private Sector.

 

Requiring that tax cuts be off-set by adding other things to tax is a fool’s errand. Real spending cuts need to be made first, starting with the elimination of programs that are unconstitutional. Democrats would howl like spoiled brats.

 

If Congress really wants to simplify the Individual Income Tax, they need to look at the Instruction Booklet and the IRS 1040 and reduce the complexity.



Norb Leahy, Dunwoody GA Tea Party Leader

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