The new GOP tax plan has been unveiled and it will help out those with more means, while having a negative effect on those who are of lower economic status.
The GOP tax plan is expected to be the biggest tax reform since 1986, helping big American corporations that will see increased tax cuts to aid their businesses. They will be able to deduct all costs of purchasing new equipment.
The estate tax for the super rich will go away by 2024 under the plan, which will help those who have at least $5.49 million in assets. Those with means will be able to keep charitable donations under the plan too.
Home owners will be affected negatively by the plan as Americans can deduct up to $1 million worth of mortgage payments, but that amount will fall to $500,000 under the new plan. Small business owners will also be hurt by the GOP tax plan as any groups earning more than $200,000 a year will pay taxes at a 35% rate.
Blue states with high taxes will pay even more as the plan will prevent taxpayers from garnering as many deductions, thus paying more to state and federal tax collectors.
The working poor will not benefit any further from the plan as they already have a $0 federal tax, but there is no increase in the credit — or money back — the bottom 35% would get from taxes.
