A Taxing Question
While Congress struggles to figure out whether, or how, to keep the 2017 Tax Cuts and Jobs Act in place beyond this calendar year, a few items of note…this data was sent to media yesterday by the Republican National Committee’s press office, but it’s been verified.
If the tax law expires, then we go back to the way things were before the 2017 act was passed. That will have the effect of a major tax increase…since we’ll be paying more in taxes than before.
Here’s the data:
· The average taxpayer will see a 22% tax hike
· The typical family of four will see a $1,700 tax increase
· 40 million families will lose half of their Child Tax Credit
· Most taxpayers’ guaranteed or standard deduction will be cut in half
· 26 million small businesses will face major tax increases, because most of that income flows through an owner’s individual tax return, and
· Over 4 million jobs will be lost because of the crunch on those business owners
I maintain a one sentence bill would take care of it, reading “the current law is extended in perpetuity” or for an additional 10 or 20 years or whatever. I’m told that’s too simplistic, but better that than this Frankenstein of a bill that adds to the deficit and bundles far too many topics into one.
There’s still time to get it right…but not unless they change their strategy.
