to the Max: The Republican Tax Bill of 2017
By: Philip Baillargeon
Whatever you do, DON’T YAWN. I know, taxes are a super boring subject. But they’re also one of the most important facets of life in the United States. Congress, even though they’ve held the majority for the past year, only just passed their first major bill. Here are five noteworthy changes to our tax code this bill puts in place:
1.The National Deficit has been steadily growing ever since the War on Terror sparked by the attacks on 9/11, and this bill adds fuel to the fire. As a country, the United States will be $440 billion in the red at the start of 2018. This number will increase by $1.46 TRILLION over the next decade. Now that’s a statistic.
2.The Child Tax Credit has been doubled to $2,000 for single parents making up to $200,000 or married couples collectively making up to $400,000 annually. This makes the credit available to more people than ever before. That’s a plus
3.The Disaster Deduction has been reeled in significantly. Before this bill, damages sustained due to a fire, storm, shipwreck or theft that aren’t covered by insurance could be listed as deductibles. However, after this legislation, this is not the case. Only official national disasters fall under this umbrella, meaning that uninsured individuals will receive no help when facing personal property loss, such as a house fire.
4.The Individual Mandate on health insurance has been completely trashed. The new tax code will penalize those without healthcare, leading to approximately 13 million fewer people being insured by 2019. Premiums will go up about 10% each year, hiking up prices and kicking people off of these programs.
5.The Corporate Tax Rate is going down. The rate for corporations has been slashed from 35% to 21%, which is a gigantic margin in terms of these large businesses. Of course, earnings are expected to go up. A rise in wages remains to be seen.
However we see these changes today, actions certainly speak louder than words. The effects of these bills could be far reaching, affecting the course of our country for years to come. These changes go in effect toward the 2018 tax season, so don’t panic quite yet. There is some time to go before the big changes hit. But certainly not long.