Tax Bill Is Christmas Present Americans Have Been Waiting For
December 13, 2017
Pending tax cut legislation will eliminate the federal income tax burden on the average American family earning $59,000 a year. It will halve the tax bill for the average family earning $75,000. And it will allow the overwhelming majority of small businesses to protect nearly one-quarter of their income from taxes.
That’s the bottom line of the tax bill that needs to be said up front.
Given the critical media coverage of the bill, these benefits have largely gone overlooked. Rather than reporting on its provisions to double the standard deduction, double the child tax credit, and eliminate the 15 percent tax bracket in favor of a vastly expanded 12 percent rate, media coverage has claimed the bill is a gift to the rich. Rather than reporting on the new 23 percent tax deduction for small businesses earning less than $500,000 a year, media coverage has claimed the bill is a budget buster.
That’s a shame because these benefits would bring long overdue relief to hardworking taxpayers who have borne the brunt of the slow growth Obama economy from which the country is finally emerging. Median wages were essentially flat between 2009 and 2016, while economic growth sputtered along at roughly 2 percent – both of which the tax bill would also meaningfully address.
Ordinary employees will not only see an immediate raise in their paycheck due to less federal tax withholding, but many will also receive raises or new job opportunities because small businesses will have more funds at their disposal.
Just as tax cuts would increase paychecks, they’d also jump-start the country’s local economies, which have largely been passed over by the economic recovery. More money on Main Street and less sent off to Washington, D.C., would stimulate local investment, consumption, and job creation.
Good for ordinary Americans. Good for small businesses. Good for local economies. This tax bill is the Christmas gift they’ve been waiting for. Legislators must pass it now.