An Analysis Of The New Tax Plan

A new day has dawned. One many thought they would never see in their lifetime. The day an African American would be elected President of the United States. There is still work to do. Our President Elect has unveiled a tax plan that will affect us all.

The basics of the plan is as follows:

• Cut taxes for 95% of workers and their families with a tax cut of $500 for single workers or $1,000 for working married couples.
• Provide generous tax cuts for low- and middle-income seniors, homeowners, the uninsured, and families sending a child to college or looking to save and accumulate wealth.
• Eliminate capital gain taxes for small businesses, cut corporate taxes for firms that invest and create jobs in the United States, and provide tax credits to reduce the cost of healthcare and to reward investments in innovation.
• Dramatically simplify taxes by consolidating existing tax credits, eliminating the need for millions of senior citizens to file tax forms, and enabling as many as 40 million middle-class Americans to do their own taxes in less than five minutes without an accountant.

These items as outlined in the President's Tax Plan are designed to bring fairness to our current tax regulations. In times past, the tax regulations seemed to benefit the wealthiest of individuals at a higher rate than the low income individual.

For many low-income Americans, the tax plan will completely eliminate their federal income taxes. This is an idea that many may find hard to fathom. In my opinion, we need to have a change in the income tax system. For many people the regulations are difficult to understand and even harder to determine how to apply them.

Another point of the tax plan is:

President Barack Obama will eliminate all income taxation of seniors making less than $50,000 per year. This will eliminate taxes for 7 million seniors-- saving them an average of $1,400 a year-- and will also mean that 27 million seniors will not need to file an income tax return at all.

This part of the plan, when it comes to fruition, will be a welcome change for many seniors. I believe seniors have been most negatively affected by many of the current tax regulations. I believe the current proposed plan will offer seniors relief that is well overdue.

A new tax plan for a new day!