Most people have one question about the Republican tax plan: What’s in it for me? If you’re a billionaire and/or member of President Donald Trump’s Cabinet, you know you’ll get a massive tax cut.
The plan will not be as kind to affect average American. An analysis by the nonpartisan Tax Policy Center showed why some members of Congress should probably hide from constituents these days.
Within a decade, “taxes would rise for roughly one-quarter of taxpayers, including nearly 30 percent of those with incomes between about $50,000 and $150,000,” the authors wrote. The Tax Policy Center projected the biggest winners would be those earning over $730,000. (The so-called “death tax,” which would end, only affects estates with values over $5.4 million.)
Keeping those numbers in mind, we looked at the jobs that will be taxed higher as the 1% gets richer. If you work in these professions, you’ll see little benefit and might pay more in taxes under the GOP plan.
15. Elementary school teacher
According to PayScale, the median salary for elementary school teachers tops $50,000 in large U.S. cities. Houston teachers earned a median salary median salary of $52,056 in 2015, and many of those individuals could pay more in taxes over the next decade.
Teachers in this income bracket fall under the “middle quintile,” where people earn between $47,400 and $69,700. According to Tax Policy Center, 28% of that group would pay an extra $1,290 by the next decade. Otherwise, your tax break would net you $1,100.
14. Truck driver
According to the U.S. Bureau of Labor, there are over 1.6 million heavy truck drivers in America, making it the 13th most common job in the country. Drivers of tractor trailers and semis earn an average of $42,500, which lands this profession in the second quintile. Unless the GOP plan changes drastically, truckers will not be winning from this version of “tax reform.” Many would see a $460 bump in annual income, while nearly 20% would have their tax bill rise an average of $510, the Tax Policy Center analysis predicted.
13. Registered nurse
The median salary for a registered nurse stands just above $60,000, putting this profession in the crosshairs of the tax proposal. According to the Tax Policy Center analysis, nurses without advanced degrees would see a maximum change of 0.5% in their after-tax income (about $1,000). By contrast, America’s top earners would see a 10% boost in income, which would mean billions more for the world’s richest.
12. Customer service rep
If customer service representatives hoped for relief from angry callers, they won’t find much in this tax plan. Things would start out as promising, however. The Tax Policy Center estimated reps earning the average salary of $33,000 would see an extra $370 in 2018. (Just over 6% would see taxes increase by $530.) However, compared to the extra $146,470 headed for America’s top 1%, customer service professionals would get a tiny slice of the pie.
11. Warehouse laborer
According to the Department of Labor, about 2.5 million Americans work as warehouse stockers and general laborers. That places this profession among the most common in the country. Going by Trump’s speech in Harrisburg on October 11, laborers might believe a tax break is headed their way.
“[O]ur framework ensure that the benefits of tax reform go to the middle class, not to the highest earners,” Trump said. However, the numbers in the Tax Policy Center analysis suggest otherwise. Laborers ear an average of $27,800, landing this profession in the second quintile. Many could see a minor income boost ($460), but about 20% would see a $510 tax increase in the next decade.
10. Administrative assistant
Warren Buffett famously questioned why his secretary paid a higher tax rate than he did. (Buffett’s net worth topped $81.5 billion in October 2017.) Unfortunately, the situation will get worse if this tax plan lands on the president’s desk. Assuming an average salary of $35,000 for secretaries, this profession sits in the tax group that has little to gain and something to lose. The luckiest would pocket an extra $460 a year; the rest would pay over $500 more to Uncle Sam.
With a national average salary just over $57,000, accountants earn right about the median (middle-point) salary. In other words, this profession is as close as we’ll get to an idea of “the middle class.” So it’s no surprise most accountants sit in the middle quintile of taxpayers. However, there appears to be little relief in sight for anyone working this job. A best-scenario adds just $940 to a CPA’s pockets in 2018. In the worst cases, accountants would pay an extra $1,000.
8. Fast food worker
Depending on seniority, fast food chain employee earnings fall between the lowest and second block of taxpayers. Despite what Treasury Secretary Steve Mnuchin told CNBC after the election, this group of workers will not see many benefits from the tax reform proposal. Lucky taxpayers would see breaks of $370 per year in 2018. On the other hand, those who fell through the cracks would see taxes rise an average of $530.
7. Office supervisor
Another distinctly middle-class position is office supervisor. This job offers an annual salary just above $56,000, landing the position in the “moderate-income” bracket in the Tax Policy Center analysis. According to Howard Gleckman, the center’s senior fellow, about one in seven people in this profession would pay $1,000 more in 2018. The other six would have to content themselves with a $660 tax break.
6. Wait staff
Is there a more diverse workforce than restaurant wait staff employees? Across America, you will find single mothers, struggling artists, high school graduates, and immigrants working this gig. Average salaries range from $15,000 on the low end to over $35,000 and up in high-end restaurants. These salaries represent multiple tax brackets, but none will win much at all with the plan for tax reform.
5. Retail salesperson
According to Department of Labor statistics, there were 4.6 million people working retail sales in 2015. That number made it the most common job in America. Surely, the most populated profession would be a beneficiary of Congress’s tax reform bill? Unfortunately, that won’t be the case. A retail sales associate might see an extra $160 per year once this plan runs its course. Those who don’t qualify will actually see taxes go up by $500 per year.
4. Repair/maintenance worker
So many American households have multiple refrigerators, washing machines, and air conditioners these days. Looking at potential client pools, you might say it’s the peak time to be a maintenance and repair worker. Likewise, the average salary of $40,000 makes them viable for heads of household across the country. However, this profession stands to benefit very little from Trump’s tax plan. In at least 10% of cases, maintenance technicians would pay $1,000 more in taxes, according to the Tax Policy Center analysis.
3. Stock clerk
Amazon orders may be through the roof, but there seems to be little lag at drug stores and small markets around the country. Nearly 2 million people work these jobs in the U.S., and average salaries sit near $26,000 per year. As is the case for retail employees, tax relief will be limited for those working this profession. In some cases, it will be worse. Theoretically, employees of large companies like CVS would see wage growth once the corporation counted up its massive tax break. However, the trickle-down concept never really worked for Americans in the past.
Cleaning equipment may be more advanced now, but the grind of sanitation work is largely the same. It’s physical labor that wears on the body, and over 2 million workers dedicate themselves to it every day in America. As profitable ventures go, it’s also one of the lower-paying jobs, with average salaries around $26,000. The situation is unlikely to improve under the GOP tax plan. By the next decade, janitors may pay hundreds more in taxes every year.
Among the most common jobs in America, cashier places second only to retail work. Some 3.5 million people toil at a touchscreen or cash register on a daily basis, with average salaries near $23,000. It’s minimum-wage work more often than not, and there might be an extra $100 per year in it for the profession. If your tax filing puts you outside the group that benefits, Tax Policy Center estimated your taxes would go up $200 per year in the next decade.
Date Posted: Tuesday, October 31st, 2017 , Total Page Views: 1438
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