In spite of what the president is saying, the GOP tax reform plan is not meant to help you and me. It is meant instead to provide corporations and the ultra-wealthy with tax breaks. The bill would permanently lower the corporate tax rate from 35 percent to 20 percent. It would also gradually phase out the estate tax by 2024, which only applies to estates with greater than $5.6 million in assets, and it would eliminate the alternative minimum tax (AMT) immediately (the AMT is s a supplemental income tax imposed by the United States federal government required in addition to baseline income tax for certain individuals, corporations, estates, and trusts that have exemptions or special circumstances allowing for lower payments of standard income tax). The AMT applies to people who make more than $130,000 a year. This plan offers nothing to the bottom 35 percent of Americans. In addition, it will increase the deficit by an estimated $1.5 trillion dollars over the next decade, according to a study by the Wharton School at the University of Pennsylvania.
How will this plan affect the average working-class citizen? To help pay for these tax cuts for the rich, the GOP plans to eliminate tax deductions that presently offer relief to the middle-class. This includes deductions for student loan interest, adoption costs, moving expenses, alimony payments and extremely high medical costs. It eliminates exemptions for dependent children and personal exemptions. It does increase the standard deduction some, however, to help make up for elimination of itemized deductions.
Trump and the GOP claim that their tax plan will cut taxes for middle class. But how will any of the proposed plan’s components help to cut taxes for middle class? Let’s look at the bigger picture. If you consider just the alternative minimum tax (AMT), President Trump paid an additional $31 million in taxes solely because of the AMT in 2005. So who really benefits from the call to immediately eliminate the AMT? How can we trust the president and his wealthy GOP colleagues to reform taxes for all Americans when they clearly benefit from their proposals?? What does Senator Heller have to gain? How can we trust Trump’s tax plan when he refuses to disclose his own tax records?
Virgin Valley Action Group