I appreciate the positive feedback now that (Trump’s) tax plan has passed, I feel sorry for those families struggling to make ends meet. A Lower-middle-class salary was once thought to begin at $18-to-$32,000, when the reality is, they’re one step away from being poverty-stricken, especially in NYC.
After further examination of the (proposed) tax outlays, doubling the personal exemption from $12,000 to $24,000 may sound good, but there is NO Extra $1,000 bonus at the end.
Why? Because the Personal Exemption per dependent of $4,050 is GONE!
If you’re a single parent of three (usually Head of Household), your current Exemption of $9,300 plus $16,200 ($4050 x 3), totals $25,500. The new personal exemption of $24,000 means this parents’ total tax will rise by $1,500… Funny how they didn’t discuss how the Earned Income Credit (EIC) and Child Tax Credit will be affected, other than saying that the CTC will double from $1000 to $2000, but then there’s the Eligibility factor, such as, your child has to be 16 or under to qualify….
Its too late to implement these changes for the up-coming Income Tax Season, but if the Republicans get everything they wanted, this Tax Plan is almost the equivalent of a “Flat Tax” were you pay income taxes, and get very little refund in return.
Considering how many Americans currently live hand-to-mouth by depending upon their refund to pay back-Mortgage shortfalls, Property Taxes and/or Rent Arrears, those families who earn less than $75K are in serious danger of becoming homeless. They will become inadvertent victims of a poverty they worked so hard to escape when they purchased that new home, or moved into that new apartment.
Coming back to those who should resist the temptation to be Tax Cheats; the burden of removing major itemized deductions (State & Local Taxes alone) will surely increase the likelihood of fudging the numbers to increase their bottom line. Those most tempted to cheat, are those placed in a position of Desperation.
“People do Desperate Things in Desperate Situations.” — Desmond Tutu.
This past Friday, concerned citizens staged a peaceful “sit-in” to protest the impending tax changes… I wonder if politicians are listening?