I have received several comments on Facebook about my March 10 opinion on the new tax situation. Seven of nine persons totally agreed and two questioned the validity without supporting documents. Here it is.
In 2017 we had a personal exemption of $8,100 for couples that made under $157,000. That was eliminated in 2018. At our 10.28% tax bracket, our cost was $833 in added tax over our meager 5.5% increase in income. So even though the increase in standard deduction was the big sales ticket promotion item in the 2018 tax reform, couples under the $157K figure still lost due to the suspension of the personal exemption. With the 2018 tax reform the tax rate for taxable income over $600,000 dropped from 39.6% to 37%. In addition, the upper class has more loopholes and tax shelters such as capital or windfall gains that shift taxable income even lower.
I have operated a small corporation for 40 years. Corporations do not need any more tax reductions or tax breaks. So point being if we could have the lawmakers put back the personal exemption, lower rates for incomes under $20K, and raise the tax rate for incomes over $600K to 40% along with suspensions of tax shelters as mentioned, our government would have a healthier budget and everyone would be happier.
Fred E. Shaub
Corvallis (April 5)