Much has appeared in this space about the tax reform act signed by the president. Most complain that this is a giveaway to the well-off. While it is not perfect, it is much better than what is in effect now.
For starters, the standard deduction is doubled, from $9,000 for couples to $18,000. For those who don’t itemize, which is most taxpayers, this is a real bonus. Others complain that the tax rates expire in eight years. Realistically, do you really think that in eight years our do-nothing Congress will vote to raise taxes?
As for who benefits the most, consider these statistics from the Tax Foundation and the Pew Research organizations for the 2016 tax year:
—The top 1 percent of earners (above $450,000 income) earned 21 percent of the income and paid 39.5 percent of all taxes collected.
—Taxpayers with incomes over $200,000 accounted for 5 percent of returns filed but paid 59 percent of all taxes.
—The top 50 percent of taxpaye...
To view the rest of this article, you must log in. If you do not have an account with us, please subscribe here.