Since I am a practicing CPA, I feel the need to comment on the tax breaks/law:
A. No tax on overtime. For most of the folks working overtime are below all of the limitations, so they are receiving a direct benefit. It is mathematically beneficial to those earning overtime.
B. No tax on tips - You are able to exclude $25K in tips from your income. I have a buddy who is a seasoned bartender/manager, he saved $5K on his income taxes - real money.
C. State tax deduction on itemized deductions rising to 40K. This benefits individuals who live in States with higher state taxes, it allows them to itemize again, which is a huge benefit, especially in a state like Maryland. Maryland if you are unable to itemize federally, they do not allow you to itemize at the State level, thus causing a double whack. With the rules reversed to near previous levels which were the law of the land for 50 plus years prior to 2016, more American taxpayers benefit immensely. It is mostly a benefit to the working middle class (married or single filers). This is a good group to put more money in their pockets as they tend to spend it, thus helping the economy. If you live in a State with NO income tax like Texas, Florida or Tennessee, consider yourself blessed, you have very good State Politicians who are rewarding you everyday for living where you do!
One thing that is really tiresome to me is the rich people tax break argument. Let's understand one fact - the so called "Rich" pay an overwhelming majority of all taxes collected by the USA and States. That is just a mathematical fact, the more money you make, the more you pay. MOST and nearly all tax breaks like Tuition, Student Loan Interest, Charity, etc are phased out for the "Rich", so they do not get a huge windfall from most provisions of the tax code. Where they save and saved money is when we reduced the top federal rate from 39% to 36%. And I have to somewhat agree, since when should you lose 40% of your income to tax? If you live in Maryland, tack on another 10% State tax and all of a sudden, you are down to 50% of what you make, is that fair to anyone? I don't think so.
My opinion on taxation is this - we should move to a flat tax - 15% on gross earnings, end of story. Your success should not be progressively penalized, it is flat out idiotic. If you make $100,000 - $15K in tax. $1,000,000 - $150K in tax, $15,000 - $2250 in tax. Pretty simple and fair. Unfortunately, it will never happen b/c regardless of political party in charge, they all want your money and as much as they can get from you.
They all waste money and as much as they can get from you!
...talking to you is getting harder and harder...
