I read with dismay Representative Dave Brat’s highly partisan defense of the new tax law which mainly took effect on January 1. Representative Brat has ignored many important points.
The first point he has failed to mention is that the individual cuts are temporary and will expire in a few years. These temporary rate cuts come with many reductions or eliminations of certain deductions. Personal exemptions are gone, hurting most larger families. There are new limits on mortgage interest and real estate tax deductions. Miscellaneous deductions are gone.
This will hurt many individuals, such as salesmen who use their vehicles for business; medical personnel and law enforcement officers who must maintain their uniforms; contruction workers and mechanics who must purchase their own tools, as well as many others.
Many larger, very profitable corporations will see their tax rates go down from 35 percent to 21 percent. Personally, I have been in favor of this type of corporate tax reform for many years. However, most smaller, less profitable corporations will suffer as they will experience a tax increase from 15 percent to 21 percent.
The estate tax exclusion has been doubled. This will be a huge benefit to a very small number of very wealthy Americans.
It is time we have a tax code that is simpler and fair to all Americans—one that does not just pick winners and losers. I wrote to Mr. Brat prior to the vote, but unfortunately his reponse seemed full of platitudes. I would welcome any reasonable dialogue he would like to have with me regarding these matters.
Stephen Wunsh, CPA
Editors Note: This letter originally appeared in the May 3rd edition of the Central Virginian, and has been re-posted with the author’s permission.