Before anyone begins to spend their “huge” tax savings, I want to point out that the current tax proposal, like many from the past will prove to be a net nothing.
They are calling an average tax cut of about $1,000 per middle class family a big savings, Wow!
I just walked by the Queens Center mall where there was a line of a few hundred people waiting to buy the new $1,000 iPhone X.
Once again all I see is a give and take that will cut and raise taxes on everyone and will lead to a net nothing. There are many things in this plan that truly bother me.
Take the elimination of the medical expense deduction. Who is this going to hurt?
The deduction is already limited under current law. In a country where medical costs are out of control you will mainly hurt the elderly, in particular those in nursing homes who are running out of money as it is.
They also want to get rid of the student loan interest deduction.
Again, it’s limited as is and only a small benefit to former students that overpaid for our broken education system. Additionally, this plan will only, in my humble opinion, continue to add to the ridiculous deficit, this is the biggest crime of all.
Addressing the deficit is just as important as giving the middle class some tax relief.
For us New Yorkers, Californians and others in states with high tax rates, we will now be unable to deduct those taxes.
This along with the proposed changes to the mortgage interest deduction will only lead to more folks moving out of high tax states, and taking their businesses and jobs with them. The real estate market will also be hit hard in those states.
Folks, once again Washington is not fixing anything, they are sticking their finger in one leaky hole and diverting the water to another.
This is not a political rant, it’s not Democrat versus Republican it’s common sense, something which unfortunately is nonexistent in Washington.
By the way, I’m a tax accountant and am offended every time I hear someone say that filing their taxes on an index card will punish us and save the taxpayer money.
We did not come up with the lousy tax code, most of us are merely trying to do a good job interpreting it and getting our clients the best outcome allowed by law.
New Hyde Park