Politics / Press Releases

Tax Reform is Looking Good for the Middle Class, Despite the Naysayers, says AMAC

tax reform GOPWASHINGTON, DC – “Why are the naysayers so determined to block tax reform efforts on Capitol Hill?  There’s all too much negativity among folks like Chuck Schumer and Nancy Pelosi.  But the reality is that there is widespread optimism that tax reform can become a reality in 2017.  Most on the left side of the aisle likely will not support efforts to improve the tax code, despite the fact that it will benefit the middle class, however you look at it,” says Dan Weber, president of the Association of Mature American Citizens [AMAC].

“House Ways and Means Committee Chairman, Kevin Brady, for example, says it’s a good bet that Congress will present the president with a tax reform bill this year.”

Some would argue that tax reform will chiefly benefit corporations and high earners.  Weber says that individuals with the highest earnings will continue to pay nearly 70% of income taxes.  And, cutting the corporate tax rate, which is a key component of efforts to streamline the tax code, will allow companies to create more, higher paying jobs for American workers.

In addition, he says, “the current tax code gives multi-national American companies an incentive to keep their earnings offshore and that has deprived us of taxes on the profits they make in foreign countries.  Offering them a reduced tax on repatriated funds and reduced tax rates going forward will give them an incentive to bring that money back home where they will pay something, not nothing in taxes.  And, it would give them funds for more job creation in the U.S.”

According to attorney and financial columnist Frank Aquila, if the U.S. would get serious about repatriation and lower the corporate tax rate, it could be the most important economic stimulus this country has ever seen.

As for the ordinary taxpayer, reform means reduced taxes, Weber says.  “Not only would there be fewer tax brackets for the middle class to deal with, but lower rates and the proposed doubling of the standard deduction from $12,000 to $24,000 for married couples, would slash the tax burden for most families.

In addition, he adds, it would simplify filing by eliminating the need to itemize deductions since you would only need to itemize if your deductions exceed the new standard deduction.”

Although the proposed new tax code would also eliminate the ability to declare some expenses, it would continue to allow deductions for expenses related to home ownership, retirement savings, charitable giving and higher education.

“And then,” adds Weber, “there is the issue of how to simplify filing your taxes.  The vast majority of us cannot file our tax returns without the aid of so-called professional tax services.  Back in the good old days, it was a rather easy task.  But, today the tax code is so complicated that more than 90 percent of Americans need professional help to do their own taxes.  By reducing the number of brackets and doubling the standard deduction, among other things, we may not be able to go back to the good old days.  But, it certainly can make life easier and less stressful for the majority of us as the deadline for filing approaches.”

ABOUT AMAC

The Association of Mature American Citizens [http://www.amac.us] is a vibrant, vital senior advocacy organization that takes its marching orders from its members.  We act and speak on their behalf, protecting their interests and offering a practical insight on how to best solve the problems they face today.  Live long and make a difference by joining us today at http://amac.us/join-amac.

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Hall Fred
3 years ago

The loss of medical deductions hits the seniors hard! That must remain in the tax bill.
I heard that it is being considered and AMAC needs to keep us informed and fight for the seniors

Thomas
3 years ago

This is only about 1500 extra for an individual ,why not give al citizens over 18 a 5000$ refund and have a 20% tax rate for all income with no deductions for any body that would be fair to every one and simple to collect and enforce .

Thomas
3 years ago

It only increases deduction about 1500$ not much for an individual why not have a 5000 refund for citizens over 18 and 20 % tax on all income with no deductions ,fair for everybody.

DWS
3 years ago

Quick review of this Thursday GOP tax plan shows no tax cut for us. Taxes would actually increase $2K. We are in the 25% bracket. The increase in standard deduction simply does not offset loss of 2016 itemized deductions & personnel exemption. Looks like the winners will be those who were taking the standard deduction.

Earl
3 years ago

I’ve heard estimates of annual deficits between $3/4 Trillion and $1 1/2 Trillion resulting from the proposed tax reform. How can that be a good thing?

Claudia
3 years ago

I favor much of the tax reform but feel that as a 73 year old woman, that I get very little benefit from this. I work full time, have to pay tax GAIN on part of my social security benefit and yet always owe taxes when I file. I take no exemptions on my witholdings, own no real estate, live in a extremely modest apartment in a less than desireable neighorhood. Could surely be worse, but I have to work hard to have a very modest lifestyle, and no retirement to provide for me when I eventually have to retire. Why in the world do I pay taxes again on my SS benefits when I make $40,000 a year. Who can provide for themselves alone on that? I have already raised 6 children but now have no tax credits available to me. I need to be able to save money so I can provide for myself when I can no longer work. I would like to see some tax reform for the many single senior citizens trying to provide for themselves independent of hand outs,

DEBBIE
3 years ago
Reply to  Claudia

Why are politicians NOT talking about eliminating taxes on social security benefits. It is DOUBLE TAXATION just as is the death tax!
Pres Trump speaks of the forgotten men and women…that should apply to senior citizens who are paying taxes a second time for their
social security benefits. I have been calling and faxing members of congress with facts about double taxation of ss benefits and hope
everyone on this site will too. 50% of SS benefits 1st taxed on in 1983. In 1986 Pres Reagan did biggest tax cuts but forgot seniors. In 1993,
if you made over $ 44,000 then 85% of benefits became taxable. Now on death tax, it will be phased out and in the meantime, nontaxable amount to
be double. In the very least, why can’t benefits be taxed only if you make $88,000 which would be double for seniors as well and at least would only
affect wealthier people.

RGGripes
3 years ago

If this so called tax reform is still leaving the Federal Reserve and The IRS fully intact then nothing will change.

Liam
3 years ago

I’m not as optimistic as Mr. Weber about the tax reform bill getting through Congress intact. We have too many liberal turncoats in the Republican party that are not likely to support it. What we will likely get is a watered down version that will accomplish nothing, and will in all likelihood be just as complicated as the present system. The tax professional lobbyists will see to that. Also I believe the repatriation argument is a bit disingenuous. If I’m not mistaken, corporations set up companies in foreign countries, pay taxes at a lower rate and then borrow money from themselves. Borrowed money is not taxed until it is repaid. So if they never pay themselves back, as I see it, they will still have the use of those funds tax free perhaps into perpetuity. What I believe really needs tp be changed is for those foreign profits to be taxed also as U.S. profits, even though those profits were generated in a foreign country. It’s my contention, this would eliminate companies moving off shore, keeping the jobs in this country.

Pete M
3 years ago

Wes still don’t know how this bill will impact the federal deficits. Will it be “pro-growth” enough to offset the initial loss in tax revenues? From what I read, most economists say this bill will grow the deficits – by as much as $1.5 trillion! Of course, we all want tax reform to spur growth, help the middle class and simplify the tax code, but there should be no further increase in deficits! It really should have the effect of reducing deficits!!

Kim
3 years ago
Reply to  Pete M

I’m more skeptical of CBO scoring than I used to be, and I certainly want to see lowering the national debt a priority. Congress as a whole does not address spending cuts as being critically important, but nibbling at the edges of this enormous debt should always be a given in the equation. Recently I heard that an increase in the GDP from 2.4% to 3% would begin to effect a drop in the debt. That’s great news, and I think this administration is capable of doing much better than that, if it weren’t for a recalcitrant Congress.

KASEY O\'CONNOR
3 years ago

Until they address the disparity of why the top 20% (I think) pay 70% of all taxes, and top 1% pay 20%?.. There will never be “Tax Reform”.. And trust me, I am a long way away from one of the top income brackets but for fairness the disparity HAS to be addressed.. I personally think ALL people should pay some tax, be it $1.00 or whatever, but as one once said, everyone should have some skin in the game.. Personally, I could care less how much Billy Gates or warren Buffet makes, but to penalize or villify someone for success strikes me as wrong.. I jnever hear them say how many get a “welfare” check just for filing, EITC, earned income tax credit; how much is that costing? Until they address entitlements, we are all on a sinking ship..
Thank you, Kasey

Pete M
3 years ago

Absolutely agree. Actually, the top !% pays closer to 40% of all income taxes. But to the left, that’s still not enough!!

Larry
3 years ago

I agree, that all should pay the same tax, and to help the poor and so called middle with the taxes, the taxes will be on all amounts of all income, be it on savings, stocks, bonds of $60,000. A deduction for all, single, married, no kids to 20 kids, same for everyone. then a tax of 26% to 35% of all income anywhere in the world. No other deductions for anything else, and members of Congress shall pay taxes too. No more off shore accounts can duck not paying taxes. And anyone caught not paying on all their taxable income the fine should be 3 times the original amount of taxes due.

PaulE
3 years ago

Well said. Tax reform should NOT be used as a means to continue the regressive nature of Progressivity. The notion that 50 percent of the population should pay no federal income taxes, while vilifying the other 50 percent that do, has to end. If it doesn’t, then all we’re doing is re-arranging the chairs at a game that is already badly fixed against those that shoulder a disproportionate share of paying the bills for our nation.

Karen
3 years ago

When the details of the tax reform/cut bill is released, I hope AMAC will provide a critical analysis of the impact the proposal will have on ALL “mature” (senior) citizens. I would also like someone to define middle class.

May Isobel Oxx
3 years ago

THE IRS IS AN ILLEGAL TAX…I CAN EVEN REMEMBER WHEN IT STARTED OUT AS A VOLUNTARY TAX DURING THE WAR.
IF YOU ARE FAMILIAR WITH “NESARA”….THE NATIONAL ECONOMIC SECURITY AND REFORMATION ACT …WHICH WAS PASSED IN MARCH
2000 AND SIGNED INTO LAW BY THE SITTING PRESIDENT IN OCTOBER OF 2000. THERE WAS A “GAGE” ORDER ENACTED, AND OUR ELECTED
OFFICIALS ARE SCARED TO TALK ABOUT IT! IT WAS DUE TO BE PAID….& 9-11 HAPPENED!
TALK TO DR. RON PAUL, HE WORKED ON IT.

Jack L Mortley
3 years ago

Our 2016 Federal tax when submitted on 10/15/17 was 48p long for a retired EE and spouse; totally ridiculous. Surely it can be simplified.

Karen
3 years ago

I have been a fan of AMAC since its inception and think they do good work. However on the issue of tax cut/reforms, they are only repeating political talking points. I would ask AMAC to 1) do a critical analysis of the tax plan, once details are known, from the perspective of ALL “mature” (senior) citizens; and 2) define “middle class.”

mike
3 years ago

Your remember the old tv commercial: “Wheres the beef’? Well, where is the beef?

johnjd
3 years ago

Let’s see a plan to shrink the government in washington to pay for it. Lets see congress and their staffs have the same health care benefits and cost structure as the rest of the country.

SARGE
3 years ago

Wasn’t it just a short while ago AMAC was telling us that Presidents Trumps health plan was going to pass? Ya, that was just a short time ago. What happened to that.

PaulE
3 years ago
Reply to  SARGE

You’ll soon learn AMAC is for anything put forth by the establishment wing of the GOP. AMAC was for virtually every iteration of the so-called Obamacare replacement plans put forth by the House and Senate. Basically because most of them contained the same solutions AMAC was pushing and they all originated from the Kaiser Foundation. Which just happened to be where most of the structure of Obamacare came from. Oops. See the problem?

SARGE
3 years ago
Reply to  PaulE

Ya, when I first came to this site i was thinking, great a conservative non corrupt place, well so much for that. But there is a lot of good Americans here to converse with.

PaulE
3 years ago
Reply to  SARGE

Yes, that is the only upside to this site: the people.

Ivan Berry
3 years ago
Reply to  PaulE

Yep, that’s about it. Later.

Clark Kent
3 years ago
Reply to  Ivan Berry

Then don’t let the door hit you in the azz on the way out…..

PaulE
3 years ago

Still waiting to see the actual details AMAC. So far, all we have is a lot of “How wonderful it will be” and “everything will work out just fine” talk. What we need to see is a lot of details in order to make an accurate and fair assessment of how good the Ryan / Brady plan will be. Yes, we have a fairly good idea how tax reform will work out for the large C corps, but remember this is supposed to tax reform that is beneficial for everyone. Remember that AMAC? Everyone! So while I am hopeful that what is scheduled to put forth by Ryan and Brady next week will indeed live up to all the hype, I will withhold my assessment and support of their plan until I can actually review ALL the details.

Rik
3 years ago
Reply to  PaulE

Tax Reform? … What a joke! … We’ll get tax reform for the wealthy and some for lower incomes. But as to the Middle Class, we’ll just continue to get screwed. Congress is not filled with Middle Class Representatives or Senators. Get the Attorneys out of politics or you’ll never get “honesty” in elected officials. … President Trump needs to bring back the Missing 13th Admendment that banned Attorneys from being elected officials!

PaulE
3 years ago
Reply to  Rik

HI Rik,

I am well aware that Ryan / Brady have no idea how to do “tax reform” beyond the part devoted to the large C corps. That is, after all, the only area most of the establishment is seriously interested in getting done. The S corps and individual components of the plan are kind of an after thought. If it gets done, then great. If not, then oh well they’ll promise to address those parts down the road. Way down the road. I am just trying to be polite and state nicely that it is ridiculous for AMAC to keep pushing all of us to blindly support a tax reform plan that is no where near finished with respect to hundreds of missing details. Only total idiots would blindly support a tax reform plan missing at least 90 percent of the details and I sincerely hope most people on this site don’t fall into that category. I just didn’t want to say any of that.

First Ryan / Brady tried to push the insane BAT as a supposedly benign way to “pay for” that portion of the tax cut. Then in the past few weeks, Brady or Ryan have floated various ideas of eliminating various deductions and even partially taxing 401K and IRA plans as a way to “pay for” tax cuts. Seriously, they think reducing the already pathetically low savings rate in this country would be a good idea? This is the brain trust designing our so-called tax reform plan. So is it any wonder we don’t have any details beyond the rough outline Ryan out out over a year ago?
Nope. Everything is being floated as a pay for except the one idea that makes fiscal sense, which is to massively cut federal spending to reduce the government’s need for so much of our money in the first place.

Anyway, the tax plan Trump had from Art Laffer actually made more financial sense and had greater detail than what we gave today from Ryan / Brady. Maybe because it was written by the same person that did Reagan’s tax plan. A competent economist with practical experience and proven results. Go figure. Instead the ONLY tax plan we have on the table is from the same politicians, who with seven years of continuous promises that would repeal Obamacare and had sensible reforms for the restored free market healthcare insurance environment, instead accomplished neither in spectacular fashion. I have NO DOUBT that Congress is fully prepared to pass tax cuts for the C corps. It is just the rest of the plan I don’t have confidence they can fully craft within the one week’s time frame.

HAM
3 years ago
Reply to  PaulE

Hi PaulE. Couldn’t have said it better. Several of us have been saying this for some time now. We will have to repeatedly tell this side of the issue because there are new commenters to this site all the time who need to hear it.

Ivan Berry
3 years ago
Reply to  HAM

Yes Ham, and the more we have said, the less AMAC has said in line of agreement.
Since the site was inoperative from about 8 or 9 hrs ago, interest in even bothering to post has kinda departed, so Y’all have a good weekend and week. Till later, see ya’.

BillL
3 years ago
Reply to  PaulE

A lot of good points have been made by all. We need the details, and fast to determine the impact. For the first time yesterday, I saw what the predicted wage range for the 3 brackets may be, as I believe that will determine for most whether they pay more or less in taxes. Scary! If what I saw comes to fruition, the current 10% and 15% brackets will be combined into the 12% bracket, however, with no increase in the income range. So, you would receive a small break there. Now, if the add in all the potential losses many could see by eliminating the personal exemption and capping the IRA/401k/403b contribution, that is where we will be slammed. There are so many variables with the current tax code, someone is bound to get hurt. With what bits and pieces I have read, and the possible changes I just mentioned, I could end up with as much as a 20% tax increase. No kidding! Being single, still working, itemizing deductions and contributing to a 403b plan, leaves many opportunities for me and those in similar circumstances to be hung dry. My thoughts at the moment are: instead of draining the swamp, let’s turn on the spigot and drown it. Make sure Trump and family are out safely first.

Sheila
3 years ago
Reply to  Rik

Rik

Why did they did away with the Missing 13th Admendment in the first place?

Rik
3 years ago
Reply to  Sheila

The 13th Admendment was radified in 1819 and restricted lawyers from serving in government and sometime during the Civil War it was removed from the U.S. Constitution and since it was never lawfully repealed it still should be law today!

Clark Kent
3 years ago
Reply to  Rik

‘Radified’? Did that have to do with radishes?

Rik
3 years ago
Reply to  Clark Kent

Hey Superman, I suggest you look up the definition of ratify while you snack on your “radishes”.

Clark Kent
3 years ago
Reply to  Rik

Define ‘wealthy’. I will be patiently waiting (but not holding my breath).

Karen
3 years ago
Reply to  Clark Kent

Exactly! Obama defined it as anyone making more than $250,000. For seniors, Medicare defines it as couples making more than $170,000 (and that includes RMDs). It is all about using wealth envy to divide people. And to justify more taxes.

Kim
3 years ago

The fact that prominent liberals like Schumer and Pelosi continue to belly-ache about tax reform, even if it helps almost 100% of American taxpayers, shows how stupid politics has become in this country. They’re obstructionists through and through.

Fran
3 years ago
Reply to  Kim

tried to like Kim but not responding today but just would like to say ‘anything Pelosi & Schumer are against has merit! :)

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