We supported Donald Trump for President and were overjoyed that he won the Presidency..
We also embraced his tax plan that will help small businesses and facilitate the return of manufacturing jobs to our country.
We do have a problem with his tax cuts however as not all cuts will help us. The middle class will have a problem with the new tax proposals.~
That 12% Tax goes way up to more than double as the 25% Tax rate applies when a person earns $75,000.00 -$225,000.00
This pertains to hardworking families currently making $75K or more based on overtime or moonlighting jobs.
These people currently pay 15% taxes. They will be overtaxed on the new Trump Tax Plan.
For example: My son in law used to make $16 hour working hard in the gas field.
He worked over 100 hours a week, being away from family up to 3 weeks a month.
He is an Iraqi War Veteran, under 30 married with three young children, one who is autistic, so their mother has to remain home to care for their son. They were used to separations while he was deployed so also sacrificed being separate so he could earn a better living for them all.
They still struggle between rent and car payments and student loans etc., like many Middle Class Americans do. By no means are they living the American Dream or anywhere near achieving it.
His first year after leaving the US Marines [after having done 2 tours in Iraq], he worked nearly 150 grueling hours per week. He has very good work ethics and desire to provide for his family.
The following year after the Obama cuts to the energy fields, his employer faced troubles and had to consolidate. Certain locations were closed and workers laid off. Those who remained had to relocate to other open locations, which forced families to either be left behind or to move with the job.
My son in law kept working and his family moved from state to state as needed, but the last state he worked in, the rents were double and his job went back to 40 hours a week with no overtime or bonuses, causing a major break in their income. It caused them to fall behind on their debts and having to pay higher rates on their loans.
They had to use up their 401K’s and other Savings just to pay regular bills, hoping that overtime and bonus pay would come back, but never did. They had to sell most of their furniture just to make ends meet, before relying on family handouts to help.
They couldn’t afford to pay the rent at their last home so moved again to a fixer upper nearer to some relatives but it took months just to secure a factory job. They are now 1000 miles away from us, their parents, so we can’t help them with child care or other extended family matters beyond sending them some money to help pay their bills as they struggle now with him earning $16.50 per hour.
His new job also costs them over $500.00 twice a month for healthcare with a $9,000.00 deductible, so when my daughter hurt her shoulder and needed medical attention, she couldn’t afford to go get medical care and has been suffering through her injury.What good is paying so much for healthcare when you can’t use it?
My son in law like many other hard working Americans, hopes to get some promised overtime to offset their health care costs, because right now they cant even afford to re-title the family van and rely on his work truck to do what they need to do. This is not living the American Dream. It still remains in nightmare mode.
Under the new Trump tax plan, their taxes along with many others in the struggling Middle Class, will jump up to 25% which is a 10% increase in taxes and will be an added hardship~!
The above tax plan we understood but the new one though it seems simplified may leave many middle class Americans actually paying more taxes than they currently do.
The above plan was changed to the following :
This new tax plan includes a 12% income tax on those earning up to $75,000 per year and then a 25% income tax hike to on those whose earnings exceed $75,001 even if that is by overtime or work deadline bonuses.
This sounds good to some–sort of — until you consider those in the harder working class ~ Middle Class Americans who strive just to support their families by working overtime.
This has always been a problem in that if a person works ‘too much’ overtime to meet his or her family needs, such as kids in a private school or going to college or trade school or a young adult child who has not been able to earn enough on a job to be able to leave home and become independent.
It hurts the families who have more than 2 children as their expenses for child care and other expenses often still constitute burdens in which a raised tax rate can keep them from being able to advance or prevent other workers such as wives/ women from entering the work force as it would raise the family’s tax rate into the next bracket.
Taxes should be based on base hourly pay in a 40 hour work week . They should not advance to the next tax bracket if the breadwinner or combined family members working cause the total annual income to surpass the bracket they are currently in.
If for example the father is working for $16 per hour.
His normal work week is 40hours.
His weekly base pay would be $640 per week.
On an annual 50 week basis [considering they get 2 weeks vacation] that would be $32,000 which would fall into the 12% tax bracket and should be affordable and non-burdensome to his and his family’s lifestyle.as the new tax code says up to $75,000 would be 12%. Idealistically that sounds okay, considering this person is barely getting by and a lowered tax rate would give that person/family a break so they can advance in life.
Well that same person has 5 dependents. Under current tax tables they have certain deductions that ‘work’ but consider they have a house payment, car payment, student loan and or other credit card payments to make. Under current tax plan they need to make more money to keep their bills paid.If they work overtime, such as gas/oil field workers for example do. That worker may sacrifice and work 100 hours or more a week to try and get ahead and provide for their family. If that worker is doubling his/her work hours, under current tax law that raises his tax rates which means that now on his base pay of $16 hour he is now paying 25% or more in taxes, if he is working more than 60-80hours a week to pay his/her bills. Combined with a spouse working another job to supplement family and adding in possible child care costs, a spouse working may also cause the family’s taxes to be into the higher brackets while they net sometimes 50% or more in taxes and in essense are punished for working harder longer hours.
I suggest that taxes be based on the base pay a person/family earns and not on their overtime or bonus rates given for harder work, The rate should remain based on their base hourly wages combined.They would still be paying tax on their overtime and bonuses but would not be punished by being placed in a higher tax bracket for working harder or longer hours.
Combined taxes should also include any children in the family earning money and paying taxes whereas before it would be a deduction for either parent or child leaving one’s taxes lost in not being able to receive any refund at years end. For example, I worked as a dental assistant through out high school. My boss deducted my taxes from my paycheck every week. My father at the same time counted me as a deduction since he technically supported me and I was a minor child. I lost the right to file for my own taxes til I was an adult and living outside my parents home.Had their been a family hour tax rate, both my father and I could have received tax credit.
One way could work is this. Just as spouses can currently file jointly currently, we should have a “family joint filing tax” that would combine all the hourly wages of working household family members paying taxes to be combined and then divided by total number of all family members including minor children or those being supported within those paychecks.
Father earns $16.00 per hour
Mother earns $10.00 per hour
Dependent Child earns $8.00 per hour
Combined Family earnings $34.00 per hour with 3 minors in school, it would then divided by total family members of [ 6 ] = $5.66 hr and to include the other minor dependents ~ would divide that hourly wage to include non-working minor children to make up their tax deductions for all the family members of that household.
This would help larger families more and be fair to smaller families as well we single individuals or couples filing jointly.
Now divide that by all dependents of this hourly wage. If they have 4 children- 3 of which are still in school or in child care that are minors or disabled and not employed .That would be 6 people depending on a total hourly wage of $34.00 per hour – That would then bring their hourly earnings down to only an effective economic wage of $5.66 per hour which better reflects their true earning status for placement into the tax bracket they should be paying from, securing they pay no more than 12%
Under current tax law if that father worked 60-80 -100 hours a week as often gas/oil workers or construction workers etc do, they would be pushed up into a higher tax bracket which would be added burden as these types of jobs have a burn out rate that later affect their health or family status or actually suppress a spouse/wife from working because their employment may only add more taxes and not profit them to work any harder. If this family were to remain in the tax bracket based on their combined family hourly earnings it would stimulate them to work more to achieve the American Dream instead of having to hold back or even forbid their minor children from working.
It is common that families making a combined hourly wage of less than $20 hour are struggling and often living paycheck to paycheck and never achieve their dreams til they are either old or win a lottery! If the tax base was instead based on hourly pay rates instead of total income earned it would be better for the hard working middle class.
How fair is it if one person,say a college professor or office worker who can make $75,001 a year and work only 40 hours a week so can pay 25% taxes compared to a family with 2 or more members whose combined salaries average less than $20 per hour?Why does that coal minor or gas/oik worker who earns less than $20 hour putting in longer hours and harder manual labor to have to pay the same rate as someone who doesn’t have to struggle as hard nor work as many hours?
Its time to change the tax tables. Pres-Elect Trump has designed a tax plan that’s 3 tiers. That is a good idea however the 12% for up to $75K only works for those who don’t have to work overtime to raise their annual incomes.
Instead please base 12% Tax Rate for families earning less than $20 per hour combined and divided by total family size and dependents being supported by that pay.
It is NOT good for those who make combined family incomes that work multiple jobs & hours to achieve a higher annual earning depending on overtime and performance bonuses.
For those who earn more than $75,001.00 including overtime worked, the rate jumps to 25% which is not fair and is burdensome as it is taxing their own stamina to work harder..
It is actually an increase over current tax plans in force and the people in this category will not benefit at all by the Trump tax plan.
As to the next tax bracket~ $75,000 to $225,000 at 25% Their taxes would not be as burdensome. Anyone making $75,000 based on a 40 hour work week times 50 weeks would be earning 2000 hours at $37.50 per hour and could afford 25% taxes easier than someone earning $20 or less per hour.
Same principal if that person making $37.50 per hour has a spouse or child working as well would be like this:
Father earns $37.50 per hour
Mother earns $10.00 per hour
Dependent Child earns $8.00 per hour
Combined Family earnings $55.50 per hour divided by  family dependents = $8.12 hour so for them so they’d still qualify for the 12% tax rate which is also fairer and less burdensome.
It should also reflect variables for part time and seasonal work so would be adjusted quarterly as some teens work in summer months and spouses may possibly work only when children are in school so the average family hour wages can vary over the year.
To add this fair yet simple hourly pay base equations into determining how much tax each taxpayer should pay would encourage poorer families to want to work and to be able to benefit from their work instead of depending on receiving entitlements.
This would encourage all who are able within a family unit who are able to work to not remain home due to fear of being placed into a higher tax bracket, in effect being punished for working harder as a family unit or individual and prepare a dependent adolescent to be able to eventually afford to go out on their own..
No one should contest that anyone earning a base pay of $225,000 or more would benefit from the current tax rate proposal, although the same variable could be applied to them as well to ensure they are also paying their fair share.