Bottom line, GOP tax reform’s good for the middle class
December 11, 2017
Once the reforms kick in next year — assuming the House and Senate can agree on a compromise — the myths about Republican tax reform will be demolished by reality.
When middle- and lower-income earners begin to see their paychecks expand as tax withholding declines and their annual federal tax liability drops, they’re certain to wonder how more money in their pockets can hurt them. And that realization is likely to be buttressed as hiring and wages improve, thanks to an improved corporate tax structure that helps small businesses invest and makes all American businesses more competitive in the global marketplace.
The details of the tax plan are still being negotiated, but every version includes lower rates for all middle-class earners and a bigger standard deduction that will make a larger portion of income tax-free for lower-income Americans. The plans also drop tax rates for small businesses and allow them to deduct certain expenses immediately, changes that can be described fairly as a robust and efficient jobs program.