Historic: How the New Tax Law Will Impact You, Your Family and Your Future

Craig Huey Taxation 5 Comments

Historic and badly needed tax reform is here.

Here are 5 important ways the Tax Cuts and Jobs Act helps you and your family:

  1. This tax reform bill is needed to get jobs moving, income up, greater prosperity in America. America has dropped to close to No. 40 among countries favorable to have a business.

I started my business out of college.

With the tax structure today and its accompanying complications, I would have never made it.

Certainly, the anemic economic growth in the last 8 years caused by the Obama administration’s job-killing over-regulations, excessive high taxes, and debt, has to be reversed.

This tax reform is a huge step in the right direction.

  1. The Republicans caved to political correctness. This is not a perfect bill but it is a historically great bill.

For example, by dropping the business tax from 35% to 20%, it will dramatically grow the economy. It could have been 15%, which would have helped every American – lower-, middle- and upper-income.

The economic growth potential of this tax reform is dramatic. If the reform were to cut taxes more and eliminate a few additional obstacles to business growth, we could expect to see a 5% to 6% growth rate.

For now, expect a 4% growth in the economy.

What does that mean? It means a lot of great things.

Remember that high taxes on business and corporations means:

  • Higher prices
  • Lower income and raises
  • Less technological change
  • Less investment growth
  • Less new jobs.

This business tax cut means:

  • Lower prices
  • Higher salaries
  • New technological innovations
  • More investment growth
  • More new jobs
  1. This tax reform is great news for 90% of Americans left behind by low wages, poor jobs, who have little hope as they live paycheck to paycheck. Most people, including business owners, have struggled terribly in this economy. Now there is hope.
  2. Under this new law, a terrible unfair practice will stop. This unfair practice is that low-income tax states have been subsidizing the rich taxpayers in the high tax states because they can deduct their state income tax from the federal tax.

This now stops. There will no longer be a deduction for your state income tax, which will affect the wealthy the most.

Rich liberals and small businesses in high-tax states like New York, California, New Jersey, Connecticut and Illinois will flee to low-tax states like Florida, Texas, Nevada, Tennessee, and Arizona because of this.

Subsidizing high-tax states is unfair to every other state. But it’s bad news for the people in those high-tax states.

  1. We have over $2 trillion overseas because our taxes are so high. American companies shelter money overseas to avoid higher taxes.

For example, instead of paying 35% in America, they can go to Ireland and pay only 12% in taxes.

Under this new law, they will pay 5% here.

It means trillions of dollars coming back to the U.S. that will be a boon to the economy – good news for everyone.

It’s not a perfect plan, but it’s a great start.

What do you think? Write me at craig@craighuey.com

Comments 5

  1. If we really want to “drain the Swamp”, we must vote out all tax-and-spend Demos as well as RHINOs, imperative! Why? Taxation is the one power Congress has that it uses either unwisely on Leftist agendas or wisely to rebuild America. Let’s Drain the Swamp!

  2. If fiscal conservatives ever do get control of Congress, House and Senate, meaning both Demos and Republican parties, the only real draining of the Swamp will involve a law that forces Congress to abide by every law it passes the same as everyone else. No exceptions!

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