Trump - GOP Tax Plan

by Mo Johnson
(Dumfries, VA)

I think this is the first time I've ever posted about politics here. I just think I should post this so people know what is really happening regarding the pending GOP/Trump Tax "Cuts"

Most people reading this will see a tax increase due to the Trump/GOP tax bill on the verge of passing congress.

I did a quick look at the impact on me and taxes for me will go up. And I suspect most of you are in a similar situation. Here's why:

1. I own a home and get about 24k all together in itemized deductions.

2. I have a wife and 3 kids so we get 5 exemptions worth about 21k all together.

Under the Trump/GOP tax plan exemptions go away, so that's 21k in (above the line) deductions I lose.

Yes the Trump/GOP tax plan doubles the standard deduction, up from 12k to 24k for married couples, but that means 0 to me (and most people who itemize) since if you itemize you don't get the standard deduction.

So, right there you can see I lose 21k in deductions which works out to about a 5k tax increase.

There is an increase in the child tax credit but that's only good if your kids are 16 or under; 2 of my kids are older than that and the third will be soon.

OK, OK, so yes tax rates are going down. But only very slightly for people (large corporations are getting HUGE tax cuts, but people are only getting a slight reduction of about 2%) . So, in the end, I'll pay about 3k more in taxes all together under the Trump/GOP tax plan.

My tax situation is very average, very middle class and so most people who own a home and itemize and have maybe a couple kids will see their taxes go up.

It will be far worse for people with large health care bills or education loans they used to deduct for as much of that is going away.
Home values will be hurt as the value of the itemized deduction goes away. For instance, I mine as well just take the standard deduction which means the homeowners mortgage interest and property tax deductions are now worthless to me. So, that benefit of home ownership will go away for most people.

Charities will be hurt as well since again, itemizing now makes no sense for most people, so there's no tax advantage anymore for giving to charities for most people.

All of this to give HUGE tax breaks to the two groups who need it least:

1. Large corporations (small businesses like mine get nothing)

2. Rich people who benefit more from the rate cut and estate tax phase out

Not to mention all of this is also causing trillions in reduced revenue -- which will add to the debt that we all eventually will pay for one way or another.

I thought TRUMP was going to cut taxes for all and also cut the deficit. The first thing he does (this tax bill) does the opposite.

SAD!