Republican Tax plan

Republicans are pushing their tax proposal as a boon to the middle class, but New Jersey residents should be wary. Changes to SALT, the standard deduction, and the child tax credit will leave households a little ahead or behind, but the overall impact won’t be huge. Intersecting financial factors mean most families won’t be sure until they file. This allows Republicans to push the popular idea of a tax cut for everyone while securing what they truly desire: a lower corporate tax rate, pass-through rate, and elimination of the estate tax and alternative minimum tax.

With a booming stock market, profits, and low unemployment, it is unlikely a sudden influx of cash to big businesses will create more jobs. The estate and alternative minimum tax only affect the wealthiest families. True small business pass-throughs are already taxed at a lower rate, proposed changes will mostly benefit households with incomes over $1 million.

Other proposals, such as the elimination of the adoption credit and changes to medical and student loan deductions, seem arbitrary and punitive.

Some of the policies aimed at the middle class could be helpful in isolation, but the top-heavy nature of this bill betrays its true intent. It disguises a giveaway to the wealthiest Americans with a vague notion of tax cuts for everyone. Middle class families that end up slightly better or worse will feel the full effect years from now, when the looming crisis over Social Security and Medicare funding is more extreme due to the revenue loss and funding cuts this bill will require.

— Greg DeLuca, Robbinsville