— by LIn McNulty —
It seemed like such a clever, beat-the-system to get around, if only for one more year, the new $1.5 trillion tax reform bill, entitled ” The Tax Cuts and Jobs Act,” which was passed by the U.S. Senate on December and signed into law by the president just before Christmas.
Among other items, the bill eliminates the ability to deduct taxes paid at the state/county level from their income tax returns. Folks in many states rushed to their local tax offices to cough up their 2018 taxes in advance, to qualify for at least one more year of the deduction.
Locally, says Rhonda Pederson, San Juan County Treasurer, their office received many calls from county residents wanting to get in on that money-saving action. The State of Washington, however, prohibits the County from collecting taxes (RCW84.56.010 AND .020) before the tax roll certification — which occurs in the same calendar year as payment is due.
It seemed like such a good idea.
When the tax cut act is called the 1.5 trillion dollar tax cut — as it seems to be now almost everywhere— it sounds to my ear as if it means 1.5 trillion dollars in tax cuts. I think that’s misleading.
I don’t know the estimated total amount of the tax cuts. I do know that between 1 trillion and 1.5 trillion dollars is the estimate of how much the tax cuts will increase the national debt. And that includes the increased revenue expected from the growth in the economy.
Our national government will borrow another 1 to 1.5 trillion dollars over the next ten years to pay for the tax cuts. That’s why l think the tax cut is more accurately titled The 1.5 Trillion Dollar Deficit Tax Law.