Families With Children Deserve Tax Relief—But A Growing Economy Too
The post Families With Children Deserve Tax Relief—But A Growing Economy Too appeared on BitcoinEthereumNews.com. Expectant parents may be disappointed that a $5,000 baby bonus—which President Trump himself said “sounds like a good idea”—hasn’t found a place in the massive tax and budget package now winding its way through Congress. The current draft of the “One Big, Beautiful Bill” would create tax-advantaged savings accounts that can be opened for newborns, and a pilot program for the next three years, during which the federal government would contribute $1,000 to kick-start each account. Accrued funds would then be accessible for the child when he or she turns 18 to help pay for higher education, to buy a house and other eligible expenses. That may be a help for parents concerned about their kids’ futures, but doesn’t feel like the same windfall as an immediate $5,000 baby bonus that was floated last month. Yet young parents have more at stake in the tax code than maximizing payouts related to the immediate years when they have young children. If bigger short-term credits or dedication came at the expense of higher marginal income tax rates, higher corporate tax rates and slower economic growth, young parents would find that they are still losers in the deal. Family together at home getty Higher marginal rates on top earners may sound like a rich and worthy source of tax dollars, but these top earners also tend to be the drivers of economic growth and job creation. Most small businesses are managed as “pass-through” tax entities, which means higher marginal rates would hit them, hurting workers and job creation broadly. High marginal tax rates discourage work, investment, and entrepreneurship—the very behaviors that drive economic growth and benefit the economy broadly. The corporate tax rate cuts in the 2017 Tax Cuts and Jobs Act (TCJA) resulted in rising real wages, more generous benefits (including for…
The post Families With Children Deserve Tax Relief—But A Growing Economy Too appeared on BitcoinEthereumNews.com.
Expectant parents may be disappointed that a $5,000 baby bonus—which President Trump himself said “sounds like a good idea”—hasn’t found a place in the massive tax and budget package now winding its way through Congress. The current draft of the “One Big, Beautiful Bill” would create tax-advantaged savings accounts that can be opened for newborns, and a pilot program for the next three years, during which the federal government would contribute $1,000 to kick-start each account. Accrued funds would then be accessible for the child when he or she turns 18 to help pay for higher education, to buy a house and other eligible expenses. That may be a help for parents concerned about their kids’ futures, but doesn’t feel like the same windfall as an immediate $5,000 baby bonus that was floated last month. Yet young parents have more at stake in the tax code than maximizing payouts related to the immediate years when they have young children. If bigger short-term credits or dedication came at the expense of higher marginal income tax rates, higher corporate tax rates and slower economic growth, young parents would find that they are still losers in the deal. Family together at home getty Higher marginal rates on top earners may sound like a rich and worthy source of tax dollars, but these top earners also tend to be the drivers of economic growth and job creation. Most small businesses are managed as “pass-through” tax entities, which means higher marginal rates would hit them, hurting workers and job creation broadly. High marginal tax rates discourage work, investment, and entrepreneurship—the very behaviors that drive economic growth and benefit the economy broadly. The corporate tax rate cuts in the 2017 Tax Cuts and Jobs Act (TCJA) resulted in rising real wages, more generous benefits (including for…
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