November Election 2024 Has $6 Trillion in Taxes on the Ballot

When you pull the lever in the 2024 November election, the future of our country isn’t the only thing at stake — so is $6 trillion in new taxes. 

Embedded in the discussion between the two major parties lies some potential deception when you peel back the onion layers and analyze the numbers. Don’t be fooled by percentages (aka the way money gets hidden); always look at the actual dollar amounts coming out of your pocket.

For instance, consider a purported 5% increase in capital gain rates for 20% to 25% — ostensibly a modest adjustment. But a deeper examination reveals that this type of tax change would translate to a 25% tax increase in actual dollars, not the 5% as reported. This basic math emphasizes the significance of the electoral choices right around the corner.

One example is that if you had a $100,000 gain and paid 20%, you’d owe $20,000. If you had a $100,000 increase and now paid 25%, you would owe $25,000. Think about it. The difference between $20,000 and $25,000 isn’t 5% — it’s a staggering 25%! This is why you should think twice about where your vote goes in November.

In retrospect, the “Tax Cuts and Jobs Act of 2017” gave a wide-sweeping example of pro-growth tax reforms, marked by numerous pivotal provisions. Some to note are the reduction of top marginal tax rates from 39.6% to 37%, a substantial expansion of the average reduction, and the implementation of State and Local Taxes (SALT) for itemized deductions, along with several others.

However, these helpful measures are set to expire by the end of 2025, eliminating $4 trillion in tax relief. Overall, if the current administration’s prospective tax reforms materialize, another $2 trillion burden could be imposed on Americans already wrestling with inflation pressures.

Consider the consequences. Under the “Tax Cuts and Jobs Act,” the standard deduction, estimated by Forbes to be utilized by 90% of tax filers, was doubled and offered significant relief, mainly to lower and middle-income families.

The possible reversion to figures that are pre-2018 if the tax cuts expire at the end of 2025 would impose financial hardship on many, not only the rich. Millions of middle-class Americans would notice a pay cut.

Likewise, the prospect of returning to a top tax rate of 39,6% and the adjustments proposed to raising inheritance taxes and federal income taxes won’t squeeze enough out of taxpayers as the government says is needed.

Without an extension, estate tax exemption levels could fall by as much as 50%, jeopardizing the transfer of wealth accumulated by families. You were doing great the last seven years? Don’t get too comfortable — it’s time to return it.

The suggested revisions to Social Security taxes also are looming on the horizon, with dialogue revolving around imposing a 6.2% unlimited Social Security tax on incomes that exceed $400,000, similar to an indefinite Medicare tax.

The president continues spouting the rhetoric that said, “I’m a capitalist, but pay your fair share.” Your fair share! In 2022, it is estimated that 40.1% of Americans paid zero income tax. Is paying zero fair?

How many of those who paid no income tax received money back in tax credits and other government structures? When the president says wealthy people need to pay their fair share, he refers to them helping pay additional taxes to support all who don’t pay any.

It isn’t long before we must each visit the ballot box in November. Before casting your vote, there might be six trillion reasons to consider the future of how much your hard-earned money you hang on to.