As you are aware of by now the House and Senate signed off on what is considered the largest tax overhaul in 30 years and President Trump signed the massive $1.5 trillion bill into law.
Not only is it the largest tax reform bill passed but measured by many the worse as well, however, that is debatable because that depends on which tax bracket you are in.
Here’s what you need to know, depending on your income, you might actually get a temporary tax cut. If you are employed by a major corporation they will receive a permanent tax cut.
If you are currently making under 100k, your taxes will go up. Why might you ask? Well, the reason is you have to pay for the tax cuts that the corporations and the wealthy receive. Now don’t get upset, nobody ever said this was going to be fair.
Now if you’re at about 100k to 200k and up, you should be ok because you will benefit too, although the majority of tax cuts will go to people who make a million or more.
A pile of tricks
Tracy Morgan once said, “politics is a pile of tricks” and we believe there is a bit of political tricknology at play here as well, notice the snare set by Trump and the Republicans should the Democrats win a future election.
In 2025, when the tax cuts expire, the future congress and president at that time will have to decide on whether or not they will renew the tax cuts, in other words making them permanent or to be responsible for a “tax hike”.
This will be a huge political ploy exaggerated by the Republicans running against the Democrats at that time. If the Dems raise the taxes on the middle class by reversing the tax cut put in place by Trump in 2017-18, the Republicans will bank on the general public forgetting that the ruse was set during the Trump Presidency.
Not only will it be forgotten but most likely the future Congress will be too afraid to raise the taxes due to the political backlash that comes with raising taxes.
To be frank, it’s like the Republicans and Democrats take turns on playing good cop bad cop with the country and economy, particularly on the poor and middle class. One political party will have a season of destroying and the next set of officials will have a season of rebuilding.
But if you notice, the people at the top are not affected by this; well to clarify they are affected but it is always a win for them.
There is hope
The truth is from an income perspective we all have to strive for a higher tax bracket and redistribute wealth. If you are a doctor, lawyer, barber, hair stylist the goal is to build wealth within our family and our own communities to ensure that we are not affected by political games.
The Rubiks Cube theory
We all know it is easier said than done and the Rubiks Cube theory always comes into play as we figure things out. It’s easy to tell someone, align the colors on all sides but its even better when that advice comes with some blueprint on how to do it.
Many of us have the gift in our hands yet find ourselves getting frustrated matching the colors as we continue twisting and turning the cube of financial literacy, free enterprise and capitalism trying to make sense of it all.
Our job is to figure out the blueprint and successfully line up the colors to prosperity.