© 2000-2020 Investor's Business Daily, Inc. All rights reserved. Tax reform championed by Donald Trump and passed by a Republican Congress was a boon for middle-income families. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Ever since Congressional Republicans passed the Tax Cuts and Jobs Act (TCJA) in 2017, the left has sought to portray the tax cuts as a bad deal for the middle class… And I work at a small company. The most pro-growth provisions begin to expire in three short years. The new tax law—known as the Tax Cuts and Jobs Act (TCJA)—will exacerbate this trend. I live just outside Cleveland, Ohio. But repealing the tax cuts would hit the heart of Middle America. Watch our free webinar to learn how to increase your profits with growth stocks. I’m expecting to write a check. Either way, I am not expecting a refund this year. I have, for the past three years enjoyed a refund. Many have even taken their anger online, with #GOPTaxSCAMStories trending on Twitter as more and more members of the middle-class express their feelings of betrayal towards Trump and Republicans. Me? Liberate older savers. I am a Republican voter. The analysis comes two years after President Donald Trump enacted the Tax Cuts and Jobs Act, a major overhaul in the nation's tax laws billed by the White House as a boon for the middle class. It's worked spectacularly well. The @GOP tax bill cost my family THOUSANDS of dollars this year on our return due to changes, thereby hitting us with the LARGEST tax increase of our lives. Right now, Americans are using their higher take-home pay for things like college tuition, a down payment on a house, or to cover the costs of starting a family. ", "Average taxpayers with incomes between $10,000 and $20,000, a group that frequently claims refundable tax credits, will have no tax liability and receive an additional refund. @realDonaldTrump I trusted and voted for you, now, screwed by you. Posted: Oct 3, 2020 / 07:48 PM CDT / Updated: Oct 3, 2020 / 07:48 PM CDT. I received a Ph.D. in economics from Columbia University. Unemployment is at historic lows, there are more job openings than people looking for work, and wages have grown above 3% for 10 straight months. Critics have pounced on the $627 billion "price tag" for the tax cuts estimated over the next decade. The 2017 tax law doesn’t help the middle class. When businesses invest, they also add jobs, increase productivity, and bring new products to market. Economist David Henderson has shown that this is a tax relief measure that pays for itself. As we've mentioned more than once, these tax cuts aren't a "giveaway to the rich" or "fat cats." GOP Better Remind Forgetful Voters: Tax Cuts Are Huge Boost To Middle Class. It’s hard for people to discount bald-faced lies when they are based on statistical manipilation. "A family of four earning the median annual income $73,000 per year will see a 58% reduction in federal taxes, while a single parent with one child earning $41,000 will see a 73% reduction in federal taxes.". Federal bureaucrats? This article has been updated. An American in the middle class or earning as little as $20,000 a year pays more than that. Others want to overturn the tax cuts to serve their pet causes. — Kurt Eichenwald (@kurteichenwald) February 5, 2019. People should be treated the same under the tax law – whether they work for themselves or work for someone else. Feb 08 2019, 5:56 PM. Independent contractors (e.g., Uber drivers) and owners of home-based businesses (most of whom are women) are discriminated against under current tax law. Right now, seniors are the only citizens who are not allowed to have an HSA. While the cuts had been proposed in earlier versions of the bill, the deductions for student loan interest and medical expenses are still available to filers. “She said that will more than cover her Costco membership for a year,” Ryan tweeted. I'm not sure yet. ", "Those with less than $10,000 in income will see their taxes slashed by more than half. ABC's "The Middle" It’s February and I am terrified to do my 2018 taxes. We don't feel that proper precautions are in place. Unsurprisingly, people have not been happy to discover that what they expected to be a decrease in taxes paid is actually an increase. Lawmakers should be working to control the growth rate of spending so that the tax cuts can be made permanent in a fiscally responsible way. The middle class voted for you. It depends on how things progress. According to a study by … Bring laws affecting working families into the 21st century. It would also leave middle-class Americans tens of thousands of dollars poorer. Just 9 Stocks Will Pull In 25% Of Corporate Profit, Analysts Say, How To Find The Best Stocks To Buy Like Apple, Amazon? EMAIL; SHARE ; I am a father of two in a dual-earner household, sitting smack-dab in the middle of the middle class. I will admit to being perplexed by Republican relatives who cheered the tax law along in 2017. Click here for more Commentary and Opinion from Investor's Business Daily. The next we bought a bed from a local business. Get instant access to exclusive stock lists, expert market analysis and powerful tools with 5 weeks of IBD Digital for only $5! A study produced by the Goodman Institute for Public Policy Research estimates we could abolish the earnings penalty tomorrow without any net loss of revenue for the government. The tax cuts are benefiting Americans at every income level. I regularly brief members of Congress on economic policy and frequently testify before congressional committees. Because of this tax, seniors can pay almost double the tax everyone else pays on pension income and IRA withdrawals and significantly higher taxes on capital gains and dividend income. But what they should know is that the government pulled in a lot less revenue, which is why Trump’s big fun parental leave proposal is probably DOA and why the government will continue to do so incredibly little to help parents even as childcare costs skyrocket. Near the end of the debate, Ernst and Greenfield got the chance to ask each other a question. Opinion: The Trump tax cut has amounted to nothing but broken promises for the middle class President Trump signs the Tax Cut and Reform bill that went into effect Jan. 1, 2018. Beneficiaries could then take advantage of the best services the market has to offer. Pro-growth policies have helped bolster the good economic times, it is imperative to build on the successes of the 2017 tax cuts so that taxes stay low on all Americans and their employers. I will not make the same mistake twice. It's time to make them permanent. In fact, the data show that Americans in every congressional district would be worse off. Former Vice President Joe Biden has now called for a repeal of the 2017 Tax Cuts and Jobs Act six times. Based on IRS data, The Heritage Foundation estimates that the average Pennsylvania and Delaware resident would lose nearly $20,000 if Biden has his way. Claim: Says the GOP plan raises “middle class” taxes by $470 billion. @POTUS thank you for screwing the middle class with your tax reform. It might if I was a waiter in a Midtown steak joint and willing to hook a bro up for some Benjamins. I served my country honorably. I just did our taxes. I tried to warn them that this wasn’t in their best interests. Or, as House Ways and Means Committee Chairman Kevin Brady described the bill earlier this month, "This will create over 1.5 million new jobs, continue to raise wages, and boost long-run GDP. Get top-quality trade ideas at the push of a button with the IBD Stock Screener. I’d rather have some more money. Despite what critics say, it has helped all Americans, not just the rich. Please contact. Tax Reform 2.0: There's little question among serious economic thinkers that the tax cuts that went into effect this year have given the economy a major boost. Why can’t they have a concierge doctor (which in some places costs only $100 a month) instead of trying to decipher the complexities of Medicare’s complicated fee-for-service system? What follows are some examples. IBD has been nominated for five Benzinga Global Fintech Awards. Before tax reform, the U.S. had the highest corporate tax rate in the world. Ernst and Greenfield discussed what changes, if any, they would make to the current tax system to address that disparity. Does anyone think that makes sense? I am the President of the Goodman Institute for Public Policy Research, a Senior Fellow at the Independent Institute and author of the widely acclaimed book, Priceless: Curing the Healthcare Crisis. Remember when he boasted about the school secretary receiving her $1.50 weekly raise because of the tax law? Something went wrong. Another provision that needs to go is the practice of forcing seniors to withdraw funds from their savings accounts at age 70½. Congress should pass them, too. Trump's Supply-Side Tax Cuts, Deregulation Vindicated By Big GDP Jump. I will not make the same mistake twice. Want to make more money in the stock market? Realtime quote and/or trade prices are not sourced from all markets. I am the President of the Goodman Institute for Public Policy Research, a Senior Fellow at the Independent. Ever since Congressional Republicans passed the Tax Cuts and Jobs Act (TCJA) in 2017, the left has sought to portray the tax cuts as a bad deal for the middle class. DES MOINES, Iowa — Republican U.S. Sen. Joni Ernst and Democratic challenger Theresa Greenfield met on Oct. 3 for their second debate of the 2020 election at WHO 13 Studios in Des Moines. The second bill would expand retirement and education savings accounts, and also create tax-free Universal Savings Accounts that would make it easier for all Americans to save for retirement and other long-term needs. I’m middle class, single with a $83,085 income.#GOPTaxSCAMStories https://t.co/afbjBv0eZa, — Michael K Richards (@_hesh_) February 4, 2019.