Reading David Browning’s letter to The Citizen prompted me to dig into the specifics on the Tax Reform Bill circulating now in Congress.
I want to be specific on what has been proposed and how this bill, although not perfect, is a step forward in improving a tax system that presently favors people that are able to use many loopholes not available to the average citizen.
• Yes, corporate taxes will be lowered from 35 percent to 20 percent, which will favor wealthy investors.
We must not forget, however, that 401K plans and many pension funds will also benefit as corporate earnings rise and stock values and dividends rise.
Lower corporate taxes will enable corporations to create more jobs and keep pension funds well financed, which will definitely benefit the middle class who are dependent on these factors.
• Standard deductions for families will be raised from $12,700 to $24,000. That is certainly not an insignificant amount to most middle class citizens. Most wealthy citizens would not be affected by this because they use itemized deductions.
• Mortgage rate deductions will be capped at $500,000 instead of $1 million. That certainly is not a benefit to the wealthy.
As I said, this proposed tax bill may not be perfect but I doubt there is such a bill ever created.
Punishing the middle class by voting against this bill, because there may be parts that also benefit the wealthy, is not a sound or reasonable solution.
Go read the proposed bill and make up your own mind. Do not listen only to talking points by either party.
Peachtree City, Ga.