Uncommon Sense with Glenn Mollette
Americans pay too much in taxes. President Donald Trump’s idea to eliminate four of the seven income-tax brackets is an excellent idea. Most Americans are sick and tired of paying everything they make in taxes. If you enjoy paying taxes and disagree with what I am writing, simply send the internal revenue service a check every month and mail them more money.
Let’s consider some of the big-money people first. A single person making $415,051 per year is in the upper tax bracket and pays income taxes totaling 39.6 per cent of their wages. To make our math simple, we might as well say 40 per cent, or about $166,000.
This would leave the affluent single person with about $249,000. All the Americans making minimum wage or living on a social-security disability-pay check may wag their heads, point their fingers and say, “That’s a heck of a lot of money and those dang people should be paying a lot more tax than that!”
On the other hand, the single person paying that much money probably calculates that they are probably carrying seven or eight non-working Americans and could feel a bit irritated by how much tax they are paying.
Let’s stay in the upper-income bracket and consider that a married couple working, filing jointly and together making $466,951 will also pay 39.6 per cent of their income. For our rounded 40 per cent figure, that means they will pay about $186,780 in taxes, which would leave them with about $280,177. This is a lot of money to live on. However, imagine handing the government almost $187,000!
The old adage is that, if you make it, then you should pay it. My contention is who wants to work longer hours and harder and then pay most of it in taxes? We have our congress people to keep up in their lifestyles. We have roads and bridges to maintain. However, everywhere I go I see tolls for roads and bridges. What about our tax dollars?
Let’s go to the low-income-bracket people. A single person making $9,276 per year is in the 15 per cent tax bracket, paying roughly $1,391 in taxes, which is a lot of money and leaves the single person with only $7,885!
I realize there are other considerations and possible deductions but this is simply for analysis and thought. The main point is that no one can do much on $9,276 and much less on $7,885. If this person were placed in the 10 per cent tax bracket, they would pay $927 – a gain of $464, which is a lot of gasoline money for someone on such a meager income.
However, the standard deduction would nearly double under Trump’s proposal. During the news conference that introduced the new plan, Gary Cohn, who heads Trump’s national economic council, said: “We are going to double the standard deduction so a married couple wouldn’t pay any taxes on the first $24,000 income they earn. So in essence, we are creating a zero tax rate – yes, a zero tax rate for the first $24,000 that
a couple earns.”
This year, the standard deduction for single filers is $6,350 and $12,700 for married couples filing jointly.
Too many Americans have an attitude that it’s OK for the wealthy to pay 39.6 per cent or even more but realistically every American grows tax weary. We want a strong military and a strong country along with Medicare and social security but being charged more and more tax dollars is not appealing to anyone who has to shell it out.
Trump’s idea will bring some relief to all Americans. Will our country suffer? No. More people will feel like working a little more, knowing they can take more of their paycheck home. His idea of only three tax levels of 10 per cent, 25 per cent and 35 per cent will encourage the current workforce and stimulate the economy with more working people.
Fewer people working cannot carry this country, even if they pay 50 per cent in taxes. A smaller individual percentage of money from millions more employed people going to work will generate more money for our government and the overall economy in the long run.
Trump’s proposed corporate tax rate of 15 per cent will also help us keep some jobs and bring some jobs back home from overseas.
Regardless of your tax bracket, let out a big “hooray for less taxes!” We can only hope.
Glenn Mollette is an American author whose syndicated column is read in all 50 states.