Since when did we become so obsessed with everyone else’s bills?
Particularly, when did we start caring so much about what our neighbors owe in taxes compared to ourselves? What we pay to Uncle Sam has become such an arbitrary amount, something that accountants can effectively plan to reduce and even eliminate if done properly.
There’s been plenty of rhetoric lately about who’s benefiting from the new tax bill. And of course it is no surprise that any time there are changes to the Tax Code there are winners and there are losers in relation to what it was prior to the change.
And the system is designed to be as fair and understandable as possible. But when it comes to tax law, those two goals are conflicting. The more “fair” the law is, the more complex it becomes.
So how fair can the system be when the new tax cuts are going to the rich?
Sure, there are some things in the new tax law that directly benefit the rich, such as reforming the alternative minimum tax, making big changes to the estate tax, as well as reducing the top marginal tax rate from 39.6% to 37%.
But so what?
Big changes are coming to help the middle class as well. Doubling the standard deduction, doubling the child tax credit, and reducing the marginal tax rates for middle and low income earners.
The tax cuts were meant to be tax cuts across the board. And for the most part, they are. The media wants to make this story “us vs. them,” but it shouldn’t be. Paying less of what you make (i.e. what you earn through hard, hard work) into a wasteful government system doesn’t make you a bad person.
There’s a reason everyone– regardless of income level– either hires an accountant or pays for the best tax software they think is available to reduce their tax liability.
If someone wants to pay more money in taxes, that person is either very patriotic, or very dumb.
What do you think of the new Tax Cuts and Jobs Act? Do you think it fairly administers tax cuts across the board? What could it do differently to make the system more fair or better?
Disclaimer: This article is not meant to be financial advice. For specific consultation regarding your situation, please consult with your local financial advisor.