Marie Some things that won’t change with the

Marie KalumbweACC 650Assignment 1New Tax Law 2017The 2017 tax reform bill is a big decision that will affect millions of Americans and how they live their lives. Corporations and anyone from the rich to the poor will see changes in their paychecks deductions, taxes, healthcare, and many more. Since 1986 when Ronald Reagan was presented, there has never been another major tax reform until when President Donald Trump signed another one On Friday, December 22, 2017. Senator Bernie Sanders has greatly criticised this new tax reform. In the discussion video provided, he argued that millions of middle-class American will see their taxes increase by .62% and the tax break would have to end in 2025 in order to sustain the current benefits and the corporate tax breaks will become permanent. When it comes to health insurance with this new tax law, almost thirteen million Americans will have no health insurance because the premium is raised by 10% when America is one country with the highest health insurance. The American deficit will increase by $1.4 trillion which will pretty much never be resolved and will continue to rise. Because of the new tax laws and the deficit, Bernie Sanders is concerned that “Social Security, Medicare, Medicaid, and Education” will be reduced.  A huge tax break has been given to the people who don’t need it who are mainly the rich.Tax laws have always benefited the rich just like the 2017 tax reform. Some things that won’t change with the new tax law includes charitable deductions where the rich get 76% of the tax benefits. With charitable deductions, the rich will be able to save more on his taxes compared to the middle class with much less income even though they donated the same amount of money. Critics have argued that you don’t need to get a tax break in order to encourage people to give because there is no big difference, people still give with lower tax benefits.  The other unchanged tax law is mortgage interest deductions. With the mortgage interest law, the rich will save sometimes three times more in taxes if they were to buy a house for the same cost. The rich can also continue to save more money on a second home, yacht etc. People who make more money, with these two unchanged tax laws, they are able to save even more in taxes. The tax code allows the rich to save more and the poor to lose more money in taxes. Because of this, the government loses a lot of money that they could have gotten if only they charged more taxes for the rich and less for the poor. The new tax reform is a big disadvantage for the middle class American and corporations especially in manufacturing which are being moved overseas due to high American tax percentage. Just today, I received an email from work talking about how starting 2018 my pay with a have a new deduction of about 0.2% if I remember correctly. Basically, this new deduction will benefit the leave benefit for a new mother, care for the sick etc if qualified. The new deduction will allow up to 8 weeks of paid leave. Again this deduction will not affect the wealthy but will affect the poor. References


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