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If the elections scheduled for November remind you of the 1993 film “The Grumpy Old Man” starring Jack Lemmon and Walter Matthau, then “The Old Man Grumpy,” ruled for four more years under a system colloquially known as Bidennomics, is likely You might want to watch “Bad News Bears” again. The difference between the two parties is not a dollar value, but $6 trillion at stake when the lever is pulled in November.
When you peel back the artichoke and actually analyze the numbers, there is a potential deception in this discourse between the two parties. Never be fooled by percentages, always look at the real amount coming out of your pocket.
For example, consider a 5% increase in the capital gains rate from 20% to 25%. This is a seemingly modest adjustment. However, upon closer inspection, it became clear that this type of tax change would result in an actual tax increase of 25% in dollar terms, not 5% as reported. This basic arithmetic underscores the gravity of the electoral choices at hand.
Inflation fears will prompt blue-collar workers to vote red in 2024
Here is an example. If you earned $100,000 and paid 20%, you would owe $20,000. If you earned $100,000 and paid 25%, you would owe $25,000. The difference between $20,000 and $25,000 is 25%, not 5%. Here’s why this simple math problem will make him think again come November.
Depending on how the presidential election goes, taxpayers could end up paying Uncle Sam trillions more. (St. Petersburg)
In retrospect, the Tax Cuts and Jobs Act of 2017 ushered in a sweeping paradigm of pro-growth tax reform that featured several important provisions. Notable among these are a reduction in the top marginal tax rate from 39.6% to 37%, a significant expansion of the standard deduction, and the introduction of state and local taxes (SALT) for itemized deductions.
But these favorable measures are set to expire by the end of 2025, erasing $4 trillion in tax cuts. Additionally, the current administration’s proposed tax reforms, if implemented, could impose an additional $2 trillion in burdens on Americans already battling inflationary pressures.
Let’s consider the impact. Under the Tax Cuts and Jobs Act, the standard deduction, which Forbes estimates is taken by nearly 90% of filers, was doubled, providing particularly significant relief to low- and middle-income households. .
If these tax cuts expire at the end of 2025, they could revert to pre-2018 numbers, creating financial hardship for many people, not just the wealthy. Millions of middle-class Americans will see pay cuts.
Similarly, the prospect of a return to the top tax rate of 39.6% and proposed adjustments to federal income and estate tax hikes won’t squeeze enough lemonade out of a lemon to make lemonade.
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Without an extension, inheritance tax exemption levels could plummet by up to 50%, jeopardizing the intergenerational transfer of families’ hard-earned wealth. You’ve been great for the past seven years, but so what? Be prepared to give back.
Social Security tax reform is also on the horizon, with discussion centered around imposing an unlimited Social Security tax of 6.2% on incomes over $400,000, similar to the unlimited Medicare tax. There is.
The president continues his rhetoric by saying, “I’m a capitalist, but please pay your fair share.” Fair share! Statista estimates that in 2022, 40.1% of Americans will pay no federal income taxes. Have questions? Is zero payout fair?
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But these favorable measures are set to expire by the end of 2025, erasing $4 trillion in tax cuts. Additionally, the current administration’s proposed tax reforms, if implemented, could impose an additional $2 trillion in burdens on Americans already battling inflationary pressures.
How many people who didn’t pay income tax got their money back from the government through tax credits or other mechanisms? When the president says the wealthy need to pay their fair share, what he means is that he supports paying more taxes to help all those who don’t pay taxes. Isn’t that so?
It won’t be long until each of us has to vote at the ballot box in November. There may be six trillion reasons why he should consider the future in how much of his hard-earned money he keeps before he presses the button and votes.
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