After a rocky takeoff, Republican tax reform is finally off the ground.
Still far from complete, it already promises wide-ranging tax cuts for the hard-pressed middle class, as well as a significant curtailment of the red tape in the tax code that has stymied business.
More than that, it represents a tremendous opportunity for President Donald Trump and Congress to resurrect our economy and usher in a new era of prosperity. There are some losers; those living in high-tax states such as New Jersey and New York would lose the deduction for state and local taxes and so will end up paying more.
Nonetheless, this is the best piece of tax legislation to have been put on the table for 30 years and, more than likely, the best we’ll ever see in our lifetime.
For starters, it dramatically cuts corporate taxes from a crippling 35 percent to 20 percent, making the United States a much more attractive place to do business. This will stimulate job growth and have a tremendous effect on the wider economy.
For small businesses, which represent 99.7 percent of U.S. employers, employing half of the private sector workforce, the bill sets a 25 percent tax rate. This will give these owners back more of their money, resulting in an explosion in job investment across the board.
For the average American, it will rationalize and simplify the tax code and give back to them a significant amount of money the federal government takes. Instead of six tax brackets, there will be four, with millions of Americans falling in the zero tax rate bracket.
It will also double the personal income tax standard deduction for people who don’t itemize their tax returns to roughly $12,000 for individuals and $24,000 for couples. This will induce millions to stop itemizing their tax returns and switch to the simpler short form.
That, along with a new family credit of $300 for each parent and non-child dependent and an increase in the Child Tax Credit from $1,000 to $1,600, will add a substantial tax benefit for lower income families.
This is a substantial break for working Americans, as was recently proven by The Washington Post, which gave Senate Democrats’ claims that the tax reform would increase the burden on lower income families a rating of “four Pinocchios” — in other words, a complete lie.
In the coming days, Democrats, who are completely committed to their resistance movement against President Donald Trump, will comb through the 400-page document and sift out anything they can use to convince us that this legislation would be bad for the average American family. That means the fractious Republican Party will have to hang on to every vote in Congress, especially in the Senate, where its majority is only two votes.
It is now imperative for the survival of the party to get behind the current tax reform legislation. Failure to act would ruin GOP hopes in the 2018 mid-term elections.
Trump has already raised GDP growth to 3 percent for two straight quarters, despite the derision of so-called experts. Unemployment is also now at a record low of 4.1 percent.
It is now time for the Republicans to present this message of prosperity and opportunity to the American people and show the American people that the left is, once again, standing in the way of the working class and the dreams of the people.
Matthew Davis is an entrepreneur and publisher based in Columbia, Missouri. He is a passionate conservative and committed Christian who has written about politics and the attacks of the left on our social fabric for many years. He believes we are all responsible for speaking political truths and hopes to join the conversation in an enlightened and respectful way. He is married with two beautiful teenage daughters and loves fishing, hunting and outdoor sports with his family.
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