38 THE QUEENS COURIER • NOVEMBER 2, 2017 FOR BREAKING NEWS VISIT WWW.QNS.COM
Republicans Won’t Rule Out Tax Hikes for Some in the Middle Class
H & R Block arrives in L.I.C.
WE'RE HERE ALL YEAR -
AT TAX TIME, OR ANY TIME.
WE UNDERSTAND YOU DON'T THINK
ABOUT TAXES ALL YEAR - BUT WE DO.
OBTP# B13696 ©2015 HRB Tax Group, Inc.
At H&R Block, we're available year-round to
discuss the tax implications of your life-changing
events. From wedding bells, babies and new
homes to medical issues and natural disasters,
we're here to put our expertise to work for you.
AVAILABLE AT PARTICIPATING OFFICES.
41-18 CRESCENT ST, LONG ISLAND CITY, NY 11101
47-46 VERNON BLVD, SECOND FLOOR, LONG ISLAND CITY, NY 11101
Hernan Barona, E.A
BY JOHN SAVIGNANO, CPA
President Trump and Republican leaders
have positioned their sweeping tax
rewrite as a way to cut taxes on the middle
class. But some top officials are now
saying the plan may not benefit everyone
in that income group.
The acknowledgment could complicate
the administration’s ability to sell the
tax plan, which is already facing questions
from Republicans and Democrats
over the cost and effect of the ambitious
Those questions have gotten more pronounced
after an analysis last week by
the Tax Policy Center, which found that
the plan could cost $2.4 trillion over the
next decade, with the biggest benefits
flowing to businesses and the wealthiest
Americans. The analysis found that nearly
30 percent of those in the middle class
could see their taxes increase as a result
of changes to the deductions and exemptions
many middle-class Americans rely
on to lower their tax bills.
The breakdown is based on the framework
released by the “Big Six” group of
Republican lawmakers and administration
officials, which did not include many
details that could change the distributional
impact, including an increase to
the child tax credit and the potential for a
higher tax rate on the richest Americans.
Yet top officials acknowledged this weekend
that a tax cut for everyone in the
middle class may not be achievable.
“You can’t make guarantees because
every single person’s taxes are different,”
Treasury Secretary Steven Mnuchin said
in comments to ABC News on Sunday.
“People take advantage of different
things, so we can’t make that guarantee.
But we can say that’s our objective and
that’s what we’re working to, and we want
to protect the middle class.”
The comments are a break from the
2016 presidential campaign, when Mr.
Trump’s advisers promised he would
instruct Congress to write a bill that did
not increase taxes for any low- or middle
income taxpayers. Stephen Miller,
who advised Mr. Trump during the campaign
and is now his chief policy adviser,
said that “in sending our proposal to the
tax-writing committees, we will include
instructions to ensure all low- and middle
income households are protected.”
Speaker Paul D. Ryan of Wisconsin said
on Sunday on CBS’s “Face the Nation”
that while the “purpose of this is to get a
middle-class tax cut,” it is impossible to
ensure that every middle-class American
would see their tax bill go down.
The framework proposes to double the
standard deduction for individual taxpayers
and increase the child tax credit
by an undetermined amount. It would
eliminate some personal exemptions and
several deductions, including those for
state and local taxes and for out-of-pocket
The elimination of the state and local
tax deduction could adversely affect
those in the upper middle class, who
tend to make heavy use of the tax break.
More than a third of the taxpayers who
earn $150,000 to $300,000 could see
their taxes go up next year, the Tax Policy
Center report stated. The average tax
bill for all income groups would decline
by $1,600, or 2.1 percent, in 2018, the
A tax plan that does not offer a cut for
everyone in the middle class could hurt
its chances as Republicans try to pass a
bill largely along party lines.
John Savignano is a partner with
Savignano Accountants & Advisors
located at 47-46 Vernon Blvd.,
Second Floor, in Long Island City.
If you have any questions or require
additional information, please call
John at 718-707-0955.