President Trump and Republicans in Congress said they would deliver on reforming the tax code and earlier this year, they did.
The bill is somewhat complicated and I recommend you at least read a variety of good summaries. But the crux of the reform is lower rates across the board, both individual and corporate.
This is a welcome action from where I sit. That money never belonged to the government in the first place, so it is always a positive when less of it is taken from those who originally earned it.
Of course, the opposition used the same old attack lines. “Tax Cuts for the rich” or “A Wall Street giveaway” or my all-time favorite, “What’s $100 per month supposed to do for anybody?”
For starters, those who make more money, pay more into the system, so naturally, those same people will get more in actual dollars saved than those who pay very little. It is basic math.
And for those in the upper income brackets screaming that they don’t need a tax cut, well, send me an email or give me a call because I would be happy to direct you to several excellent charities who could use that money.
The idea that $100 per month savings is nothing to the average person us quite laughable.
I have an employee who told me he plans to use that money to pay his car insurance for the year.
Maybe that’s no big deal to people like Tom Steyer, but it sure means something to my employee.
Which brings me to my next point: employers. Yes, employees benefit from this tax plan, but so do employers, which is a welcome change.
I have been looking to expand my business for some time, but the punitive tax rates were making it next to impossible for me go to it.
With these lower rates, now I can, which will create more jobs and greater overall revenues to share with my employees.
We are already seeing the benefits take hold with companies like Comcast, Wells Fargo, and AT & T, who are giving out bonuses and raises as a result of the tax bill being passed.
And a new report out shows wage growth is now at its highest point in eight years, further showing just how much the tax cuts on the corporate side have done for the average person.
One of the biggest negatives of the tax bill is the fact that it will likely increase the debt. But to be honest, as much as I don’t like the debt being increased, it was going to happen, anyway because government spending was not going to cease going up.
So, if the debt is going to increase regardless, I’d rather it be because people are keeping more of the money they earned than because it was used to expand existing government programs or start completely new ones.
And as an added bonus, it’s always a laugh listening to people who championed President Obama — a man who added $10 trillion to our debt in eight years — now suddenly concerned about the debt.
This plan is not the end all be all, but it is definitely a step in the right direction.
I look forward to using the money I will be saving to grow my business and hire more employees, and I am likewise happy for others who will be able to afford more in their everyday lives due to the increase in their paychecks.