The Republican tax bill has now been revealed. It looks good – to most of us.
The average American will see lower taxes and perhaps even retroactive ones as the bill stands now. Our 401Ks are untouched; they should never have talked about restraining the amount you can put in as it stands now. Businesses get a break, which will promote more jobs.
For the class conscious, they can rest assured. The rich will not get a tax break. The top tax bracket remains. That has caused some tisk, tisking among conservatives. They need to shut up. True, Republicans believe in tax cuts across the board. But had they done that and lowered the tax rate for the 1%, they would have handed the Democrats a talking point that would have destroyed the whole deal.
Can you imagine what the media would have said? Billionaire Trump wants a tax break for himself. He wants one for his buddies, too. Trump knows this and knows that his own status precludes a big cut for the wealthy. Class warfare would have gone nuclear.
It’s better to have the 1% suck it up and help the rest of us, don’t you think?
Another cog in the tax cut wheeling and dealing has been the state income tax deductions. Now residents in such states get to deduct it on the federal form. If this bill passes, they won’t be able to take that. If you watch Fox Business, you’ve heard the hue and cry from their reporters and anchors. Most of them live in New Jersey or New York. They want to deduct that chunk.
To all that I say too bad. You live in a state with income tax, you’re a rabbit to an alligator. According to internet sources, “Seven U.S. states currently don’t have an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. And residents of New Hampshire and Tennessee are also spared from handing over an extra chunk of their paycheck on April 15, though they do pay tax on dividends and income from investments.” Thanks to Senator Brian Kelsey, that tax rate is being diminished.
In other words, red states will get rewarded and the uber liberal places like New York, New Jersey, California and Illinois will have to suck it up.
The only downside in this is they may wise up and move here and bring their liberal progressivism with them.