NANTICOKE, LUZERNE COUNTY (WBRE/WYOU)- The Trump tax reform plan has people in our region talking, and most of all trying to figure out how it will impact then.
Tax experts till Eyewitness News on the surface President Trump’s tax reform plan should benefit the average American, but at the same time they say the devil will be in the details.
“It’s very complicated and trying to follow it is very complicated,” says Larry Spaide of Mountain Top.
Spaide was fueling up his truck Wednesday. He is hearing all the talk about the Trump tax reforms, talk he admits he does not fully understand.
“Well hopefully it lowers our taxes so hopefully we have more money back in the future and it benefits us Americans,” says Spaide.
Karen Hazleton is a certified public account. She has analyzed the Trump tax plan.
“It’s going to take so much of the complexities out of the tax law,” she said.
She used two piles of books to illustrate how the current tax code compares to the Trump blueprint.
“This is what the new tax plan is supposed to do for us,” says Hazleton. “It’s supposed to take away all of this and this is what we are going to be left with.”
Hazleton says the biggest feature of the Trump proposal involved standard deduction and exemptions.
“The standard deduction will be raised to $24,000 for married filing jointly and $12,000 for single taxpayers,” says Hazleton. “It would eliminate all the standardized deductions except for mortgage interest and charitable contributions.”
The Trump plan would:
- Reduce the seven tax breakets to three: 12%, 25%, 35%
- Eliminate the estate tax
- Reduce the business tax rate from 35% to 20%
So how will the plan impact the U.S. economy? Dr. Rob Seeley is a professor of economics at Wilkes University.
“The purpose here is to enhance the economy and this should raise the incomes of most people so I think in general the design of the plan will enhance economic growth,” she said.
Critics of the Trump proposal argue that it will cut the tax rates for wealthy corporations and the top one percent of Americans. Recent polls show that Americans believe those at the top of the financial food chain are simply not paying enough in taxes.
Trump’s plan still has to be approved on capitol hill and it’s falling along party lines. Most Republicans like it, virtually all the Democrats don’t.