Bankruptcy Lawyer in San Diego Comments on Proposed Tax Reforms and What They Mean For You
When you step into the voting booth for this year’s presidential elections, think of the consequences your vote carries with it. Whether you choose this side or the other, be mindful of how the next president’s program will affect you. While the candidates paint an idealistic picture of how their program will impact the system, you have to consider the impact these candidates’ proposed tax reforms will have on your own wallet. Every bankruptcy lawyer in San Diego will tell you that a few hundred dollars each month can make a huge difference if you are indebted or nearing bankruptcy.
The latest presidential election tax debate is not that different from those in the past. While the Republican candidates strive to make the government smaller and make sure that you keep more of your tax money, the Democrats are proposing that everyone pays their fair share in order to make sure that the federal system can finance areas like education and healthcare that benefit everyone.
Who Do These Plans Affect the Most?
The political debate this year and the proposed tax increases and cuts are largely focused on the 1%, however all taxpayers (and not just the wealthy ones) will feel the repercussions of the newly-adopted tax reforms. How much you will gain or lose largely depends on the candidates’ individual programs and proposed tax reforms. Bear in mind that idealistic reforms and those which sound too good to be true should be met with a healthy dose of skepticism, as working with the Congress to pass these reforms often yields different results than what the candidates intended.
Every plan has some components that may be easier to implement as well as some points unlikely to be agreed upon. As a citizen filing for bankruptcy you have to take into account all of these points and the repercussions they might have if adopted by the Congress, no matter how likely they are to happen in the long run.
Since in some cases income and Social Security taxes cannot be discharged in the case of a Chapter 7 bankruptcy, some of the proposed reforms in the tax system may make it easier on citizens with large debts about to file for bankruptcy, while others might put you in a significantly more difficult situation. The rules regarding tax discharge in case of Chapter 7 bankruptcy are very complicated and usually work in favor of those who genuinely cannot afford to repay the tax bills. And again, while all these reforms might not get passed in the future, it helps to know how each of the candidates’ individual programs affects you.
The Candidates’ Proposed Reforms and How They Affect You
Presidential candidate Hillary Clinton’s proposed tax reforms will not affect you unless you are earning more than $1 million per year. Her plan does not change much for the middle class, but those with higher earnings might feel the proposed reforms on their skin.
On the other hand, candidate Ted Cruz proposes a 10 percent flat rate across all income groups. Furthermore, Cruz proposes eliminating Healthcare and Social Security taxes. His program works in favor of wealthier individuals, although this change might face some difficulties with the Congress.
Bernie Sanders plan focuses on generating the most revenue for the federal government, and his proposed changes impact all income groups. By increasing the amounts of taxes each year, Sanders plans on providing free college and healthcare programs.
Often controversial candidate Donald Trump has something else in mind. His plan is to relocate a huge amount of money from the federal government and into the taxpayer’s pockets. While his plan affects all income groups, the wealthiest will see the most benefits out of his proposed reforms.
Filing For Bankruptcy? Consult an Expert Bankruptcy Lawyer in San Diego
If you have any questions about how the proposed tax changes can affect you, feel free to book an initial consultation with The Bankruptcy Lawyers Group, Chang & Diamond, APC at (619) 312 – 4900 and (800) 718 – 8118. We have a vast experience in Bankruptcy cases and are happy to share our professional opinion.