To the Editor:
Katie Finlon’s article titled “Consultant breaks down new federal law,” published Feb. 24, 2019, cited tax law changes, but missed why so many people love the new law.
I’ve been professionally preparing taxes for 33 years. Carmela Gregory missed accenting some key ideas that made the new law wonderful for everyone. First, it lowered of taxes for everyone. Congress, last year, gave wage earners 3 percent of their own money back – money to be used to buy bread, gas and new clothes for their kids.
Everyone who was in the 15 percent bracket got back 3 percent more. Everyone who was in the 25 percent bracket got back 3 percent more. It means you were taxed less for sweat equity. If you worked at McDonald's and earned $35,000, in 2017, you paid 3 percent more. In 2018, you saved approximately $831. In 2017, if you made $50,000 working at a local office, you paid 3 percent more. In 2018, that taxpayer kept $1,095 in their pocket to make house payments and car payments. Further, with two children, even after the exemption loss, families got $595 more for each child. That $1,190 didn’t come out of your paycheck. It come from Uncle Sam’s coffers, to your family with love.
Families needed that extra cash to pay for school lunches, clothes for the kids and the baby-sitters. This was great legislation. It benefited just about everyone, but especially the family. The tone seemed to miss that. Almost immediately after its passage, the tax law helped. Americans didn’t miss the effect, when because of lower withholdings ($21 dollars a week for about 46 weeks, put on average $966 dollars in people's checkbook). The balance came at refund time.
Gregory pointed out a truth that some refunds were smaller. We are not fooled. They were smaller, because less went into the IRS till to begin with. Families and people could keep more money and be taxed less. That’s a good thing and should have been celebrated. In conclusion, I want to thank the men and women in Congress who thought enough of all of us, to let us spend our money as we wish. Unfortunately, the new administration at the Illinois governor’s mansion doesn’t agree.
He is coming after the green in our pockets.
Greg “Pop” Davis