15 Scenarios Illustrating the Effects of Tax Reform

communications • October 19, 2017

Too many in our country are shut out of the enterprise of the U.S. economy, which has led to the justifiable feeling that the system is rigged against hardworking Americans. Why is our tax code more than 70,000 pages long? Why is the American worker being punished for his/her savings and investment? Why does the tax code favor some at the expense of others?

The unified tax reform framework is about answering these questions and fixing our outdated, burdensome, and unfair American tax code. It’s about moving forward and ending a 31-year-old Washington D.C. status quo. It’s about rewarding hard work, ending the war on American businesses, and helping everyday Americans pursue the American Dream.

Okay, that sounds too good to be true. We can’t blame anyone for their apprehension considering the tax code has favored those who can afford to take advantage of its maze of deductions and provisions. Instead, here’s a list of real-life scenarios to illustrate the effects of tax reform on the everyday American.

In the case of simplicity…

1. You no longer have to spend hours with Tom the tax guy counting  and organizing a year’s worth of receipts. Instead, you can go read a book or invest that newfound time in a new hobby.

2. You no longer have to hire an accountant to help organize and itemize all your deductions, the standard deduction outweighs and out-pays that headache anyways, which means you get to keep a little more cash in your pocket.

3. When you start your new job, you no longer need to navigate a pile of daunting and confusing paper work.

4. When tax season comes along, you’re filing your return on a form the size of a POSTCARD. Yes please.  

5. Also, for those of you who dealt with this nightmare, you no longer have to calculate your taxes twice since the Alternative Minimum Tax is gone.

In the case of financial security…

6. You get to keep more of your paycheck because you dropped from the former 10 percent bracket into the 0 percent bracket.

7. You get to keep more of your paycheck because of the DOUBLED standard deduction, you can use that money and take that your family on that overdue vacation or pay off student loans!

8. Oh, did you get married this year? Congratulations, you don’t need to deal with the marriage penalty, ‘cause that’s gone now too.

9. Even your kids are helping you out, an enhanced Child Tax Credit means additional help goes towards the cost of raising a family. We could all use some financial security and peace of mind when it comes to raising our precious ones.

10. For those of you with family-owned businesses and farms, your children can rightfully inherit and continue your hard work after you’re gone. The ‘Death Tax’ will no longer exist.

In the case of American businesses…

11. There is actually a job market in your town since small businesses can afford to grow with a maximum tax rate of 25 percent.

12. Oh, and your nephew who sells computers was able to expand his business and hire new employees because he can write off investments.

13. Basically, business is booming because your local, friendly manufacturers are seeing the lowest marginal rates in almost 80 years.

In the case of the American economy…

14. Since tax reform, the incentive to offshore jobs and keep foreign profits overseas has ended by eliminating double-taxation of foreign profits through a territorial system.

15. And with the new corporate tax reform, the studies were right – there are more jobs and higher wages in the U.S..

 

The vision for tax reform is simple. It’s about creating new jobs, growing paychecks, and bringing fairer taxes to American workers across our country.

Tax reform matters because it affects all of us. By staying “in the know,” you can get a clear understanding of what tax reform will mean for you and your family.

Check back at GOP.gov for further updates on tax reform or sign up to receive this information directly in your inbox.

 

Related:

What Do You Want From Tax Reform?

Answering Four Misconceptions about Tax Reform

7 Ways Tax Reform Helps Middle-Class Everyday Americans

A Tax Code That Puts America First