To the Editor:
Recent articles claim federal Republicans’ new tax bill won’t bring much-needed relief to the middle-class and small business owners.
As a hardworking small business owner, let me clear up this misinformation and briefly explain how this bill will help ordinary taxpayers and the vast majority of small business owners that pay tax at individual rates. First, the bill would double the income threshold under which taxpayers pay zero tax to $24,000. Second, it would eliminate the 15 percent tax bracket in favor of an expanded 12 percent bracket on the next $90,000 of earnings.
These two reforms alone will save hardworking taxpayers a couple of thousand dollars a year, which will stay in communities to create economic activity and new jobs. The bill’s roughly doubling of the child tax credit would save taxpayers with children even more.
Small businesses would benefit from a new 9 percent tax bracket on their first $75,000 of earnings, saving them several thousand dollars a year that can be reinvested in business expansion, higher wages, and new jobs.
The tax bill strengthens the middle-class and small business backbone of the country — media accounts notwithstanding.