Trump tax plan only makes America weak
Caregivers, children, other dependents and potential homebuyers will suffer
Truth be told, the amount of tax individuals pay can be more or less at all income levels, depending on circumstances such as: number of dependents, whether or not the taxpayer owns a house, employed vs. self-employed, lives in a state with income and/or property taxes, etc.
How did we get here? Our country was about 150 years old when Congress implemented an income tax around 1915 to fund the military for WWI. Once the war ended, Congress realized three critical uses of a well-implemented income tax system effectively utilized by other democratic societies, past and current. In order of importance:
First, to collect information about the citizens. Think about all the information we provide on our income tax returns, especially now with 91 percent of us filing electronically. Everything from the IP address of the home computer we hit “send” on to our bank account information, who holds our mortgage, who we donate to, where our children go for day care, etc.
Second, to dictate our behavior through legislation. Our income tax evolved during its first 50 years by a Congress made up of representatives of our “greatest generation,” the generation who pulled us through the Great Depression, WWII and built America into the strongest economic power on the planet. These representatives implemented tax benefits that build a strong America (via values) such as home ownership. A country made up of homeowners is a country cherished by its citizens with a vested interest in things like better schools, roads, law enforcement, etc. These citizens are more willing to fight for their country, to send their children into the military.
And third, to raise money for the government. Surprised? Yes, to raise money for the government is third.
How does the Trump tax plan make America weak?
First, it removes the personal exemption. We no longer get to claim ourselves, our children and others we support as dependents and receive a tax deduction — presently about $4,000 per person. A married couple with two kids receives a $16,000 deduction. This deduction is gone. The greatest generation of legislatures recognized the importance of encouraging its citizens to not only care for its children but also for others in need — families where grandparents are raising grandchildren, aunts and uncles are raising nieces and nephews, grown children are now caring for parents, handicapped children who never leave home. All of these tax-deductible dependents are gone under the Trump plan.
The Trump plan increases the child tax credit as an offset to the removal of the personal exemption. Really? The child tax credit expires at age 17, just when it can become the most expensive time to raise a child. Presently, claiming someone as a dependent can continue throughout their life, regardless of age. These various versions of a family desperately need the personal exemption. Without it what does our country look like in 20 or 30 years where there’s no tax break for these types of diverse families? Our current tax code helps these families; the Trump plan ignores them and treats them the same as a married couple with no children or dependents.
The Trump tax plan doubles the standard deduction, eliminates the state and local tax deduction and caps the mortgage interest deduction; this trifecta removes the tax incentives for homeownership. No longer will young Americans strive to get that first home, encouraged by the significant tax savings they’ll enjoy. It was only nine years ago when Congress passed the First Time Homebuyer Tax Credit to encourage and help this critical piece of building a strong America — individual home ownership. What does this country look like in 20 years if it passes? We’re a country of renters? We all know renters’ lack of care and concern for their property, generally speaking, versus individual homeowners. Is this the America Trump wants? A few real estate owners like him and a bunch of renters?