My View of the Trump Tax Plan

FOR WORKERS: the Standard Deduction looks good on the surface because it increases [until 2025, when it expires], individuals from $6,350 to $12,000; couples from $12,700 to $24,000. However, this plan totally eliminates Personal Exemptions which are each now worth $4,050. This means that a Couple LOOSE $8,100 before taxes; a Couple with 2 children LOOSE $16,200 before taxes.

But wait, how about those that itemize? Some deductions are eliminated while others are cut back [no deduction for state income or local property taxes]. Some taxpayers may face tax increases in 2018. We just do not know many of the details of this 500+ page plan.

FOR CORPORATIONS it is WIN-WIN: Top tax rate drops from 35 percent to 20 percent. Trickle down has been shown NOT TO WORK. This is just pure profit.

FOR THE WEALTHY it is WIN-WIN: the 28% Individual Alternative Minimum Tax is TOTALLY GONE. A 3.8% tax on interest, dividends and capital gains of higher income households that helps funds the Affordable Care Act would be GONE. Also GONE is the 40% estate tax, which is charged only on estates worth about $5.5 million or more.

THE BUDGET MUST BALANCE. The really BIG QUESTION, how is this loss of income going to be funded? With cuts? The Military Budget is expanded higher than ever before. Trump’s wall is a costly addition. Where will the money to make up the loss from Corporations and the Wealthy come from? My guess is you and me as well as Medicare, Medicaid, School funds, etc. In other words, this massive giveaway to the Wealthy and Corporations will probably be funded by eliminating NEEDED PROGRAMS for children, workers, retirees, veterans, and those in most need.

Trump is very vague about many aspects of this bill. Personally, I want DETAILS.

Why would a Senator or Representative VOTE FOR this bill? Definitely NOT because it helps Mainers.

Ann E. Ruthsdottir,
Brunswick