Monday, September 28, 2020

Reagan reduced tax deductions for the non-rich

Sept. 28, 2020

Because of discussion of Trump's tax return, the media is discussing the ways that the rich can legally greatly reduce their taxes, as well as the fact that they are getting away with tax fraud by claiming deductions they are not entitled to. I'll include some articles on that in this blog.
 On the other hand, I remember how Reagan and Congressional republicans took away deductions that help the non-rich. Before their changes, you could deduct all your medical expenses, but they put in the change that you can only deduct part of your medical expenses.
Also, they totally eliminated income averaging for regular people. I used it once when I was out of work for several months during a recessions, and it helped me.  It would have been very helpful to a lot of people if it were still available, eg., during the great recession, now during the Covid recession, for people who can't work for extended periods because of illness.
But averaging is available for income that is significant for the rich, on investment income.

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