(WTVM) - As the new federal tax cut becomes a reality in our paychecks starting in the next couple of weeks, we think it’s important to spell out the most positive parts of the tax cut.
Because it isn’t often the government asks us for less money. But wanted to pay lower taxes is what originally made us all Americans.
Remember the Boston Tea Party? It may not be taught much in schools anymore, but the colonists resented the high taxes of their British overlords - especially with no voice in the government.
So, the Americans dumped Britain’s precious tea leaves into the harbor to demonstrate their dislike of high taxes.
Anytime the government listens to the people and actually cuts taxes, no matter by how much, it can only be a good thing for our economy.
It’s true that the lowest income earners won’t see any effect from the tax cut, but they don’t pay any taxes now.
Only about 45 percent of Americans pay federal income tax.
For earners making between $40,000 and $70,000, the new tax rate for 2018 would be 12 percent, a savings of about 3.6 percent. So if you make $50,000, instead of paying $7,500 in taxes, you’ll only pay $6,000.
And everyone’s standard deduction will double, from $12,000 to $24,000. That’s a significant help to everyone.
There’s no question that corporations benefit handsomely from the tax cuts. But we are already seeing scores of companies investing the cuts they will receive into their businesses or their employees in higher wages or bonuses.
Top earners will also benefit from the tax cuts, but their rates remain the highest.
When certain pundits say the tax cuts are unpopular, it’s amusing to think: Who are those people who would turn their backs on a tax cut? Even if the tax plan is flawed, as much of our tax law is, at least these cuts about to take effect give us a little piece of our hard earned money to put back in our own pocket where it belongs.
General Manager Holly Steuart brings two editorials a week to WTVM. If you would like to respond to an editorial, e-mail your response to email@example.com or write to:
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