WBEN Photo/Susan Rose

GOP Tax Plan Raises Eyebrows

Gulyas: "This is Not a Middle Class Tax Cut"

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Buffalo, N.Y. (WBEN) - "This is not a middle class tax cut".  The first reaction from Esther Gulyas, also known as The Tax Lady on the newly unveiled GOP tax bill. 

The President of E.G. Tax says "it favors upper incomes" and breaks it down further.

  • A single mom with 3 kids, $50K income, this will cost you $936.
  • Single taxpayer, no kids, $50K income will save $1055
  • Married couple, 100K, no kids, it will cost $459
  • Married couple, over age 65 on Soc Sec of 75K, will save $636.

"In some cases it's good, in some cases it's bad, but the good is not really good" said Gulyas. 

The sweeping new tax bill cuts the number of tax brackets from seven to four, and doubles the standard deduction for married couples bringing it to $24,000.  "It does double the standard deduction but it eliminates the personal exemption" said Gulyas.  The standard deduction this year for a married couple was $21,300.  The new tax plan changes it to $24,000.

"There are outside sales people, people that use their car for their job, people with large medical bills or large expenses living in New York State.  They will not be able to itemize anymore. It also gets rid of the Student Loan Interest deduction.  What's troubling is that these people need the deductions. They are not upper income people" said Gulyas. 

The plan offers big potential breaks for the rich, like repealing the estate tax. It's a win for business by slashing corporate taxes from 35 to 20 percent. 

House Speaker Paul Ryan hopes to have the tax bill on President Trump's desk by Christmas.

 

 

 

Examining the GOP Tax Plan - Esther Gulyas

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