Home ยป William D King: A review of whether or not these new proposed tax law changes are good for America

William D King: A review of whether or not these new proposed tax law changes are good for America

William D King

With the new proposed tax law changes that we will discuss in this paper, it is my belief that they are good for America says, William D King. I will start with discussing certain aspects of these proposed changes and their effects

Effects on Corporations:

One of the proposed changes to the current tax code is a reduction of corporate taxes from 35% to 20% (CNN). This would help corporations so they can keep more money to invest and expand their business, while still paying some taxes (which is better than paying no taxes as many do now). They can use that money to hire employees and increase everyone’s income which leads to an overall greater economy.

The other thing that we need to look at is how these companies treat all their employees based on what they have now. If more money is going to the employees of a company because of this proposed change, then that is great! More people will be getting a pay increase and keeping up with inflation if they are living in an area where the economy is better. For example, I live in Houston, TX which has been doing pretty well lately due to an increase of jobs available, but there are still some parts of the country where workers aren’t making enough ($35k/year) for their basic needs (CNN). In addition, these companies could use the extra funding to improve production so they can sell more products thus increasing revenue explains William D King.

Impacts on lower-income families:

In my opinion, the only people who will get a tax refund from this proposed change are those who qualify for the earned income tax credit. According to CNN, “the EITC reduces the amount of taxes owed and results in a refund for some workers”. Even though there is a proposal to increase the max child tax credit from $1000 to $1600 per qualifying child under age 17 (CNN), that still may not be enough for a family of four or more. In addition, some lower-income families already have difficulty affording health insurance plans with high deductibles because they make too much money to qualify for any subsidy. If companies keep more of their money and can hire more employees then that could help these families, but this may lower wages to make up for the extra money.

Impacts on lower-income families:

In my opinion, the only people who will get a tax refund from this proposed change are those who qualify for the earned income tax credit. According to CNN, “the EITC reduces the amount of taxes owed and results in a refund for some workers”. Even though there is a proposal to increase the max child tax credit from $1000 to $1600 per qualifying child under age 17 (CNN), that still may not be enough for a family of four or more.

Impacts on Middle-Income Families:

Middle-income families will probably see an average of $1000 increase as well as those making less than them (CNN). As per William D King, those who are part of the middle class would be able to save some of this extra cash or spend it on things that they need or want. There is also a proposal that we change our tax brackets from seven different brackets with the highest being 39.6% and bring it down to four different brackets with the highest being 35%. This means if you’re in between 10k-75k you’ll be paying fewer taxes which means more money to save or spend. This may help the economy because people will have money in their pocket to invest/spend which could help boost up growth for future generations who are just getting into the work field.

Impacts on higher-income families:

This tax reform proposal that is being discussed would get rid of an alternative minimum tax (AMT) that exists in our current law says, William D King. The AMT applies a separate set of rules and a different rate schedule with a larger exemption amount which is why some people end up not having to pay any income taxes, but it is also a reason why many upper-class citizens do not qualify for many deductions (CNN).

Impacts on higher-income families:

This tax reform proposal that is being discussed would get rid of an alternative minimum tax (AMT) that exists in our current law. The AMT applies a separate set of rules and a different rate schedule with a larger exemption amount which is why some people end up not having to pay any income taxes, but it is also a reason why many upper-class citizens do not qualify for many deductions (CNN). In addition, this proposal would get rid of the estate tax which means that people could pass on their assets and not have to pay any taxes when they die.

Conclusion:

The changes proposed to taxes would help both the middle income and high-income families which are two of the main top three top voting demographics in America. The upper-class citizens are one of the top three most influential groups because many members have a lot of money to spend on things like campaign donations which means that they can donate to politicians so they vote for laws that favor them.