New Tax Law For The Benefit Of Hardworking Americans Not Elites, Sen Collins Says

New Tax Law For The Benefit Of Hardworking Americans Not Elites, Sen Collins Says

Republican Senator Susan Collins from Maine has defended her recent support for President Donald Trump’s controversial tax reform bill, stating that it would help families and the economy of the state and the country.

In a newspaper article, Collins said that the new law would:

  • help lower-income and middle-income families keep “more of their hard-earned money”
  • boost the economy
  • encourage businesses to grow and create jobs in Maine and around the country.

Families Benefited By New Law

According to Collins, most Maine households will see lower taxes and have more money in their paychecks starting early next year.

She pointed out that while critics believe that a $1,000 tax cut is not much, it will in fact make lives easier for families like helping to pay for an unexpected car repair or fund a vacation to a nearby location.

Nearly 72 percent of Mainers who currently use the standard deduction provision will see lower taxes under the new law, as

  • it nearly doubles the standard deduction to $12,000 for single filers and $24,000 for joint filers
  • Child tax credit is doubled from $1,000 to $2,000, with up to $1,400 of that refundable, which will benefit low-income families that do not owe taxes

Collins noted that as a result of the amendments authored by her  taxpayers will be able to deduct up to $10,000 of state and local taxes. And another amendment of hers has restored the deduction for high medical bills and lowered the threshold for two years from 10 percent to 7.5 percent of income.

These provisions will help seniors and also those who are tackling unreimbursed medical costs for long-term care or expensive chronic conditions.

Widespread Misinformation On Bill

Sen. Collins lamented the large amount of misinformation being spread regarding this bill and sought to clarify some of them, noting that:

  • the bill doesn’t cut Medicare by $25 billion
  • It hasn’t introduced tax on graduate school tuition waivers, or the removal of the student loan deductions, or the $250 tax credit for teachers.
  • It has not removed insurance for people, and has instead eliminated the penalty on those who don’t buy health insurance as mandated by the Affordable Care Act

Job Creators Get Support Under New Law

According to Collins the United States cannot continue to have the highest statutory corporate tax rate in the world, at 35 percent as it was costing jobs.

Citing examples of various small and large businesses that will benefit from the corporate tax cut, she said that with the tax cut, companies will be able to boost investments made in their facilities and increase their competitiveness while “remaining a U.S. company hiring more U.S. workers.”

She further added that small businesses, which are “the true backbone” of the Maine economy, will receive tax relief, helping them “create more jobs, increase paychecks and grow the economy.”

Collins quoted Curtis Picard, president of the Retail Association of Maine, who said that the “tax reform bill, was a “welcome relief for small businesses” for Maine as well as its nearly 9,000 retail establishments with over 80,000 retail jobs .

In her opinion, “the weak economic growth and stagnant wages” observed in recent years in the United States cannot be accepted as “the new normal”. With the new tax law, “hardworking Americans” will soon be able to get back money in their paychecks and in the future , benefit from higher wages.

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