The Left is targeting Trump with a new unfounded claim. They are twisting facts to benefit themselves (again) while leaving out the truth. One of their latest swings at the President is his tax plan. Naturally, the Dems are saying it has failed, which is simply not true. Once you know the facts behind the tax plan, it makes sense. This is obviously something the Left has failed to or doesn’t care to understand.
- This tax plan is different then what the citizens of this country are used to. Everyone has become so accustomed to the government holding their money paid in taxes until the refund season, that there is failure to realize this is “free” money for the government.
- The “free” money comes in the form of interest accrued on taxes paid in through the year. Just like most financial institutions, the government is able to use that money as a platform on which to grow interest, which is in turn given to the government, NOT citizens. Trump is trying to keep more of this money in citizens’ hands to begin with.
- Tax rates were lowered for just about everyone to benefit 6 million taxpayers. Trump’s tax plan doubles the standard deduction for some, with an estimated 94 percent of people choosing this deduction. The standard deduction increased whether you are single or married.
- The U.S. Treasury has stated that this bill would bring in $1.8 trillion in new revenue. Trump is also hopeful that this tax plan will give the economy the boost that it needs and allow American workers to keep more of the money they earned.
- Self-employed people will also benefit by getting a 20 percent deduction on all qualified income and take larger deductions on business investments rather than amoratizing them.
- Homeowners can deduct interest up to $750,000 from their homes which can result in significant tax credits and reduced financial obligations.
- If you have children you can get a higher amount from the child tax credit act. This amount has increased from $1,000 to $2,0000, doubling the money yet again. However, there are also limits in place so that only a portion of the credit can be applied as a refund. This was designed to stop people from seeing their children as a yearly paycheck they could cash in on without having to go to work or working very little. In other words, the days of taxpayers making non-working parents “tax rich” are coming to an end.
- There is also a $500 amount available for families that take care of elderly family members. If a citizen inherits an estate, the estate tax exemption has doubled with this tax plan.
- The bottom line is that you may be receiving a smaller tax return this year, but if you look at the tax rate, it is essentially lower. This means throughout the year you are walking away with more money in hand when you receive your paycheck instead of waiting a year to get your money back.
Paying less in taxes and receiving a smaller income tax refund seems like a win/win for everyone. Now that the facts have been stated, it looks like the Left has struck out again!