From The Daily Signal.com (Dec. 14):
The bottom line is that taxpayers across America can expect a tax cut. The bill would lower tax rates for individuals and businesses, double the standard deduction, and significantly increase the child tax credit.
The bill is also pro-growth and pro-American worker. The economy could grow to be almost 3 percent larger at the end of 10 years. That translates to more than $4,000 dollars per household, per year. American families could finally get a real raise.
Americans deserve to know the truth about the proposed tax reform packages. There are several myths going around about what the proposed plan would do.
Here are a few of them, and why they’re wrong.
Myth 1: This is just a tax cut for the rich, and it will actually raise taxes for everyone else.
The truth is in fact the opposite. The Senate tax bill increases the amount of taxes paid by the rich and, according to the liberal Tax Policy Center, 93 percent of taxpayers would see a tax cut or no change in 2019. It found similar results for the House bill.
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Myth 2: Repealing the individual mandate will raise taxes on the poor, raise insurance premiums, and kill 10,000 people a year.
Only in Washington can removing a tax penalty be considered a tax increase.
Tax reform will likely repeal Obamacare’s individual mandate, which imposes a tax penalty anywhere from $695 to upward of $10,000 for not purchasing the type of health insurance mandated by the federal government.
Depending on income and available health insurance options, the federally mandated health insurance comes with subsidies paid to the insurance company that can range from no more than a few dollars to over $12,000 a year per individual, and upward of $20,000 per year for families.
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Myth 3: Corporations and their rich owners will receive a huge windfall.
Politicians who don’t want tax reform claim that cutting taxes for business will only help the rich.
Despite the name—“corporate” tax reform—the burden of the corporate income tax falls almost entirely on workers in the form of lower wages. Americans are undoubtedly skeptical about this claim, but the realities on the ground are actually quite simple.
When business taxes go down, workers’ wages go up.
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Myth 4: Tax reform will be bad for seniors.
Retirees may be the most concerned about what tax reform will mean for them, as most rely on relatively fixed incomes.
But, the proposed reforms are good news for retirees. For the most part, they would be less affected than other Americans, as the proposed reforms would not change the way Social Security and investment income are taxed.
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Myth 5: Tax reform won’t grow the economy, it will only add to the debt.
Congress rightly allowed the tax reform bill to decrease revenues over 10 years by $1.5 trillion—about 3.5 percent of projected revenue. But such “static” budget scores provide zero useful information about how the reform will actually affect the deficit.
Properly designed tax reform will lead to a larger economy and higher wages. Each of these economic benefits can result in more tax revenue. [read more]
Good analysis. The tax bill is probably not the best bill, but it is not the worse either. Any tax cut is better than no tax cut. The Dems would say otherwise. To them cutting taxes and regulations is the end of days.
Other articles on tax cuts from FEE.org:
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