Welcome
I try to add tax blog articles weekly on tax topics that may be interesting to you. Please browse. If there is a topic you would like to see here or would like to more information on, please contact me.
The Hidden Side of “Bringing America Together” Editorial
Election day is soon approaching. Lets look what each side offers tax wise. . . We all know what our President has given us—the Tax Cuts and Jobs Act. Let’s look at the “Bring America Together” sides tax wish list:
- Increase taxes on those making over $400,000
- Increasing top tax rate from 37 to 39.6%
- Reducing itemized deductions
- Reducing the 20% qualified business income deduction for small business.
- Increasing Corporate tax rates to 28%
- Business Incentive tax credits to revitalize, renovate or modernize existing facilities *
What’s bad about that? Aren’t these the“RICH” folks? Let’s paint a picture for who’s affected . . . How about the doctor working at the hospital? He’s studied fifteen years of his life to practice medicine. He’s paying off student loans, medical malpractice insurance, buying a house and supporting a family. So if he and his wife make $400,000 are they really rich? They probably owe that much in STUDENT LOANS! If he can’t make ends meet, do you think he would go elsewhere if the tax bite is less? In the era of COVID do we want him or any other skilled labor to go elsewhere?
Small businesses: Almost 50% of employee jobs come from small business (less than 500 employees)*. In this era of COVID, would it be nice to earn a paycheck? Do we really want to reduce small business profits used to hire employees and expand services? If small businesses pay more taxes, do they have more or less resources for paying wages? For Equipment? For Employee benefits?
Corporate tax rates same as above. Corporations create a lot of jobs. Make it too hard to turn a profit and corporations go elsewhere (Ireland anyone?!)
Lastly, businesses won’t revitalize existing facilities if they can’t turn a profit AFTER revitalization. Higher taxes will minimize any PROMISED tax credit (Congress makes tax law).
Back to “Square One”. If we want to“Bring America Together”, why not support policies which benefit all? Let everyone benefit from THEIR OWN LABOR. As everyone benefits, the economy improves, people go back to work and government receives the needed taxes. Picking winners and losers based on earnings or name tags (e. g. “the rich”) is neither fair or American. However, it was the strategy Hitler and Stalin used when they were coming to power. . . . Think it through and then make your decision known in November. VOTE!
*(Source Kiplinger Tax letter Vol 95, No 16)
**https://www.sba.gov/sites/default/files/advocacy/2018-Small-Business-Profiles-US.pdf
Photo by cottonbrofrom Pexels