Their benefit, not ours
I would like to comment on Congressman Johnson’s article in the 7-22-18 issue of The Review on how great the tax reform bill that was passed is for the people in his district .
Take a closer look at the tax reform bill he is bragging about. Most of the benefits go to the richer people and business interests with the large tax cuts they are getting. No matter how he tries to spin it, it is not going to help the lower to middle class people in his district of which I am one of many.
He says 95 percent of the tax filers in his district use the standard deduction and will be getting an average tax refund check of $2,059 this coming tax year.
If you are a family of four in the lower to middle class with average income of $50,000, or lower, you better find a very good tax preparer with a very sharp pencil to come anywhere near that figure.
If you’re using new standard deduction of $24,000, you will be losing money, compared to what you could have claimed under old tax laws.
First thing on Jan, 1, 2019, you will be losing personal exemptions of $4,050 for each of you, which adds up to a total of $16,200.
Lost. Also you could have taken old standard deduction of $12,700 for a total exemptions of $28,900.
Using new standard deduction of $24,000, you are losing $4,900 in exemptions. Good luck with getting that tax refund check of $2,059 he promised you. They are giving us pennies while the rich and business interests are getting millions in their tax refunds.
Do not fall for their spin. It was put in for their benefit, not ours.