On December 22, 2017, President Donald Trump succeeded in passing the 2017 “Tax Cuts and Jobs Act” (affectionately dubbed “TCJA”).
This tax season is the first year that the residents of Maine will be able to evaluate the results of Trump’s tax reform act. So far, the results have been a mixed bag nationally.
As for Maine, some are quite thrilled (namely big corporations operating in the state), while others (primarily the working class) are saying it did absolutely nothing for them.
Then there are those who say TCJA is a curse (which could be defined as the “ugly”).
As was predicted by Democrats before and after Trump signed TCJA into law, big companies are the ones winning significantly from the tax cuts. However, not every large corporation in Maine agrees.
Michael Brigham, CEO, and president of ImmuCell Corporation says that TCJA caused his company to suffer a net operating loss in 2018 and 2019.
The Portland-based animal health company develops and produces products aimed at keeping dairy and beef cattle healthy and disease free.
But even Brigham sees a rainbow beyond the clouds, stating “But when we turn profitable, at least the expense will be lower. I guess you can’t have your cake and eat it, too.”
How TCJA Is Affecting the Nation
Across America, the regular working class hasn’t felt too much of a change financially due to Trump’s tax reform.
Only 32 percent of working adults nationwide reported seeing more cash in their banks because of the tax cuts.
However, 52 percent say they haven’t noticed any change in their financial situation at all because of TCJA.
In addition to that, out of the 32 percent who reported seeing extra money as a direct result of the 2018 Tax Cuts, 62 percent clarified that the “extra pay helps either “some,” “just a little” or “does not help much at all,” according to CNBC.
How TCJA Is Affecting the Rest of Maine
Who is the “rest of Maine?”
The rest of Maine is primarily comprised of its citizens and small businesses, which make up around 83 percent of the state’s export business.
According to the recent statistics, 70 percent of those small companies will choose not to hire new employees, while 60 percent won’t be giving out raises because of TCJA.
And while over 500,000 Mainers rely on Medicaid or Medicare, and the Republicans’ tax cuts are threatening what economic security they have.
The thing is, you can’t expect things to ever go your way, especially when money and politics are involved. However, Tax Defense Partners in Maine published an article on how to increase your 2020 tax refund.
You should start saving any and all receipts having to do with income or tax-deductible expenditures. One way to do this is by scanning each and everyone as you collect them. By storing them electronically, you will save space, as well as save you from digging through hundreds of paper receipts.
Donate to Charity
The awesome thing about donating to charity is the fact that you’re helping someone in need and what you spent for charity will be repaid in the form of tax reimbursement. Most anything that you can prove was given or spent on charity is deductible, albeit some are worth more than others. For example, you will get a full deduction if you use your credit card to pay for charitable proceeds.
Whether you’re a business owner or an employee of a company, taking classes involving your industry are great investments in a number of ways. One of those ways is through the Lifetime Learning Credit, where if you pay for 2020’s tuition before December 31, 2019, you will be eligible for a tax credit for up to $2,000.