I got a raise?!
Not really, my check just went up because of the tax cuts and because the government is letting me keep more of my money.
This should be a great thing, right? I’m actually pretty enthusiastic about the extra cash on my check, but it also makes me very curious about the tax plan and how it will affect me in the future.
According to this, the tax plan is going to give me more money until 2026 when these new tax cuts expire. The tax plan is good for businesses because their tax cuts do not expire. It’s also good for anyone in the top 1% who will benefit from the doubling of the estate tax exemption (Amadeo, 2018).
If you’re opposed to the Affordable Care Act’s rule about everyone having to have insurance and being penalized for not, then you’ll love the new tax plan. This rule was in place to keep insurance affordable and without it, insurance premiums will increase (Amadeo, 2018).
Another thing this bill does is allows for the drilling on previously protected land for oil. This is supposed to bring in money but won’t do so until oil prices per barrel reach $70 (Amadeo, 2018). Currently, it’s around $65.5 (Crude Oil, n.d.).
Right now, it looks like I’m getting more money so it would be easy to ask…
I think this comes down to all the parts of the tax bill that has nothing to do with giving me more money. Like most legislation, there are things in this bill that aren’t the “selling” points, like the authorization to drill on previously protected land.
What has been presented by the right is that the bill will give everyone a tax cut and will give us all more money right now. It will also make it easier to file taxes…next year.
What has been presented on the left is that it eliminates the mandate requiring individuals to have health insurance, gives a lot of breaks to the very wealthy and businesses, and will eventually go away.
Your decision is choosing whether you care about the cash in your pocket right now, or whether you are concerned about 2026 and what this will do to your pocket then. You also have to decide on how you feel about businesses and the wealthiest making serious bank.
On a personal note, I’m going to buy a bottle of wine with my extra cash and try not to feel too guilty about it.
Amadeo, K. (2018, February 01). Trump’s Tax Plan and How It Affects You. Retrieved February 02, 2018, from https://www.thebalance.com/trump-s-tax-plan-how-it-affects-you-4113968
Crude Oil (n.d.). Retrieved February 02, 2018, from http://www.nasdaq.com/markets/crude-oil.aspx