SPRINGFIELD, Mo.–Supporters of the Senate approved tax reform bill insist it will bring off-shore money back to the United States, grow jobs, and improve wages.
Opponents argue it’s trickle-down economics are not good for poor Americans, but, KOLR10 wanted to try to make sense of it all.
We spoke with political analyst, Dr. Brian Calfano and asked what the bill means for the middle class and small business owners.
“If you are in the middle, middle class and above, it’s a good thing because the standard deduction that a lot of people take around tax time has been doubled assuming all this becomes law and so that’s a big positive for folks,” says Dr. Brian Calfano.
If there are winners and losers with this approved senate tax reform bill, Dr. Brian Calfano says the winners are the middle class and small business owners.
“What you’re able to do is save money on your taxes that you’d be spending as part of a corporate type of bill. Now you can do that as a pass through as it’s your personal income tax or your personal income and so that’s a big plus for people who own businesses,” says Dr. Calfano.
But like with most things, there’s a catch to the bill even for those who come up on the winning side of it.
“It’s an individual case by case kind of basis, but across the city and across southwest Missouri, you’re looking at people who are going to be looking at some hard choices. Yes they will benefit from the standard deduction increase, but they may end up having a lot of that eaten up by not being able to have affordable health coverage for themselves and families,” says Dr. Calfano.
That’s because if the bill passes, it would repeal the individual mandate under Obamacare, which is one of the reasons why Senator Claire McCaskill is not supporting the bill.
“I think it’s important to remember this isn’t about the mandate, this is about a $400 billion cut to healthcare. You don’t do away with the tax and net $338 billion unless you’re giving up something for people and what we’re doing here is we’re cutting people’s healthcare funds, we’re cutting Medicare,” says Sen. McCaskill.
“A mixed bag at this point for Springfieldians. It’s the same sort of situation as it is around the country. A mixed bag depending on how much you’re able to make and what your current health insurance coverage looks like,” says Dr. Calfano.
The next stage in the process is for the House to either approve the Senate’s version of the bill or create another general version of it for the Senate to agree on before it reaches President Trump’s desk for signing.