President Trump finalized the GOP tax bill by signing it into law before the Christmas holiday. Some Americans were in strong support of the bill while others felt somewhat differently about it, and by “others,” I mean people who don’t reside in the upper 4 percent of wealth in the country.
The new tax bill, which Trump claims is terrific for the middle class, is actually quite the opposite — especially for upper-middle-class families. Though the bill has already passed in Congress and been signed by the president, many democrats are still protesting its existence.
Not to mention the Trump administration’s obsession with reversing any policies enacted by the previous administration. The key changes being made in this bill virtually oppose in all manners the taxation laws set forth by Obama. This tax bill, amongst other bills that have been drafted by the GOP, have been met with severe disagreement and discord amongst the American people.
Your Tax Rates Will Fluctuate
One thing you can expect with this new bill is that your tax rates will surely fluctuate throughout the next 10 years of the bill’s lifespan. Though some might call the fluctuation standard and barely noticeable, members of the poorest communities in our country will be left completely flustered and bamboozled by their new tax increases.
According to PBS, on average, Americans who make less than $10,000 a year will see a 563 percent increase in the amount of money they are paying the federal government in taxes come 2027. Middle class Americans will see an increase of about 117 percent, resulting in them paying the federal government tax money in 2027. What’s stifling is, the richest Americans who are making more than $1 million yearly will see a decrease in the amount of money they receive from the government by 85 percent, though they will never actually owe the federal government tax money.
Clearly the lowest tax brackets will face the most challenges in 2027 when they go from paying roughly $80 to the federal government to paying roughly $530.
The Rich Get the Benefits
It was clear from the fruition of this bill that it would largely impact the upper class and the amount of wealth they get to hold onto each year. While Americans who barely scrape by are forced to fork out nearly 5 percent of their income for federal taxes, those who make enough money to live sustainable lives will pay less than 1 percent of their income toward taxes.
It seems backwards to think those who live in wealth and security have to do far less to appease the federal government than those who barely scrape by paycheck to paycheck. This is likely the cause for the backlash this bill received.
The upper-middle class is likely to see a large change with the new tax bill as well. Families who have received wealth in response to running small businesses, for example, will see a major change in the amount of money they owe the federal government come 2019. Unfortunately, this change could be negative rather than positive.
Corporations Will Crush It
Corporations can look forward to some serious tax breaks with the new GOP plan. Though corporations represent some of the wealthiest individuals in the world, they will now begin to see more profits as the tax bill lessens the percentage of money owed based on revenue. All we can do is hope that they choose to reinvest that money back into the government by opening new factories, hiring more Americans and donating to charities.
Be sure you prepare for these new tax changes as the year goes by. Attempt to make smart financial moves in this heated political climate and start saving your money, investing your money, and finding means of making more money through additional work (which no one enjoys) or starting small businesses for extra income.
Ask yourself necessary financial questions in this new year and be sure you have intelligent answers in return. The GOP didn’t necessarily have the lowest earning members of our community in mind when this bill was drafted, so protect yourself while no one else seems to be doing so and prepare for a financial future that might be frustrating or downright impossible.
Author: Kelly Shepherd is a writer from Boise Idaho. She enjoys writing about the outdoors and her dog, Cassius. In her spare time she writes captivating fiction and confusing poetry. Follow her @kellyshep14 on Twitter!