|| by Will Galloway ||
Columbia – Today, Congressional Republicans released a plan to overhaul our antiquated and complicated tax code. In this article, I’ll be breaking down the bill, which President Trump reportedly wanted to call the “Tax Cut Cut Cut Act,” and sharing why I support it.
Currently, the US Corporate Tax is 35%, the highest of any industrialized country in the world. Even the Scandinavian socialist paradise of Sweden only has a corporate tax of 22%. The Republican Tax Cuts and Jobs Act would reduce our corporate tax to 20%, slashing it by fifteen percent! Our onerous corporate tax burden has been one of the main forces that have driven American corporations overseas, and this dramatic slash would undoubtedly lure large manufacturers back to the United States.
The bill also increases the child tax credit to $1,600 from $1,000, helping lower income families and families with multiple children to provide for their children. This is arguably the least controversial portion of the tax bill, and also one of the most significant. The bill also includes a $300 credit for each parent.
Also abolished is the estate tax or “death tax.” The so-called Death Tax, which taxes money left to the family of a deceased individual, is phased out over six years. The tax has done remarkable damage to small businesses and family farms, and the abolition of the tax will be a boon to these entities that often make up the backbone of rural areas.
Perhaps the most controversial facet of the bill is the proposal to cap mortgage deductions for new home purposes at $500,000, down from $1,000,000. The mortgage deduction has historically helped the wealthy rather than the middle class (as it was intended to) and has accelerated the unfortunate rapid growth of Suburbia. By capping the deduction, the bill will cut down on artificially inflated reckless speculation in the real estate market.
Finally, the bill dramatically simplifies the filing process – under the new tax plan, most Americans will be able to file their taxes in 15 lines on a paper the size of a post card.
Now there have been many lies circulating about the bill, largely from democratic officeholders grandstanding to increase their profile before 2020. Even the Washington Post has given Sen. Kamala Harris four out of five Pinnochios on her claim that the bill would increase the tax burden on most Americans. And contrary to the claims of many on the left, the bill will not touch 401(k) savings accounts.