Autumn has arrived, the leaves are turning and midterm elections draw near. Halfway through the presidency term, midterm elections allow Americans to take a look at the previous two years of the presidency and decide if they want the same politicians in office or prefer a change in Congress. If voters are satisfied they’ll likely vote to re-elect the same individuals to remain over the next two years, or if they’re dissatisfied, they can vote for change. Right now, the Republican Party holds the majority in Washington. There’s a Republican president and Republican majority in both chambers of Congress — the House of Representatives and the Senate. Republicans also hold the majority in the two tax-writing committees: the House Ways and Means Committee and the Senate Committee on Finance.
In 2017, with Democrats opposed, the Trump Administration managed to pull of the biggest tax overhaul since Reagan’s Tax Reform Act of 1986. The new law has not been very popular amongst taxpayers and is perceived to give bigger tax cuts to corporations and the wealthy versus your everyday working citizen.
Oliver Wendell Holmes Jr., once said, “Taxes are what we pay for civilized society.”
Taxes are how we maintain most everything we need to run the country’s infrastructure. The U.S. tax system is made of various taxes that generate the country’s revenue. From highways to our country’s defense, subsidized lunches to science research, our tax dollars fund public programs and services such as these.
Both political parties agree that providing funding to assist state and local governments maintain infrastructure is vital and necessary, but each party has a different view on how they want to achieve things when it comes to tax policy.
The Republican Party is more interested in tax cuts and tax relief. They believe lowering taxes for corporations, would allow them to expand and hire more people thus stimulating job growth. While lowering individual tax rates, it leaves more money in the pockets of taxpayers and ultimately increases spending, investing and retirement savings.
On the other hand, the Democratic Party believes raising certain taxes generates revenue for government spending which generates more business. They want to cut down on corporate loopholes and tax avoidance, and then use the funds to provide tax cuts to the middle class believing that relief should go to the working class and their families. Democrats also believe that money can be pumped into the economy through government-funded programs.
From immigration to tax policy, politicians establish the laws, regulations and guidelines on how society should run. They also develop and present the idea, decide how much is needed, when, where, how, as well as how much is to be collected and how it will be spent, in addition to other things. So even though this isn’t the election for the presidency, your vote is just as important. A shift in either chamber can change the route of tax policy, government policy as a whole and make it difficult to implement the Trump Administration agenda.
This November, in the federal race, all 435 seats in the House of Representatives and 35 of the 100 Senate seats are up for grabs. Of those seats, in the State Of Indiana is electing a United States Senate seat, as well as all of Indiana’s nine congressional district seats in the United States House of Representatives.
In the Indiana State House Republicans also hold the majority and there are general elections at the state level. The ballot includes: Senate, House of Representatives, Supreme Court judge and three executive offices — attorney general, treasurer and auditor. Various local elections will be held for local school board seats, county clerk of the Circuit Court, county auditor, county sheriff, county assessor, county recorder and Marion County Superior Court Judges. All of these positions at federal, state and local level have an influence on how our society operates. Politicians speak “on your behalf” and vote on policies regarding everything from immigration to taxes, so make sure you vote for someone who will represent your view.
Be sure when Nov. 6 comes, your voice is heard and head out to the polls. Regardless of whether you love our economy or hate it, whether you’re Democrat or Republican; federal, state and local policies affect you, your family and your community. Find out which political view represents what you stand for; help them be elected to stand on your behalf.
For a list of Indiana’s midterm election candidates visit: https://www.in.gov/sos/elections/files/rpt_CandidateList_Short.pdf
TaxPolicyCenter.org is an excellent resource to discover more about tax policy
For news and updates on the Tax Cuts and Jobs Act of 2017 visit: IRS.gov/tax-reform.
Brittany Sabalza, enrolled agent, is director of continuing education for Pro Tax Solutions Indianapolis and a tax columnist.
