Letter: New tax bill would provide relief to middle class; here’s the math
Editor’s note: Find a cited version of this letter at http://www.vaildaily.com.
To the editor: Recent articles claim federal Republicans’ new tax bill won’t bring much-needed relief to the middle class and small-business owners.
As a hardworking small-business owner, let me clear up this misinformation and briefly explain how this bill will help ordinary taxpayers and the vast majority of small-business owners who pay tax at individual rates. First, the bill would double the income threshold under which taxpayers pay zero tax to $24,000. Second, it would eliminate the 15 percent tax bracket in favor of an expanded 12 percent bracket on the next $90,000 of earnings.
These two reforms alone would save hardworking taxpayers a couple of thousand dollars a year, which will stay in communities to create economic activity and new jobs. The bill’s roughly doubling of the child tax credit would save taxpayers with children even more.
Small businesses that earn six figures a year will benefit from the higher income thresholds in the 25 percent and 39.6 percent tax brackets and the elimination of the 28 percent bracket. These reforms would save them several thousand dollars a year that can be reinvested in business expansion, higher wages and new jobs.
The tax bill strengthens the middle-class and small-business backbone of the country, media accounts notwithstanding.