Teachers who use their cash to acquire classroom supplies will end up losing their tax break if the current Republican legislation makes its way through Congress. The existing tax code allows for a deduction of up to $250 from their gross income. Therefore, if the tax bill pushed by Republicans is adopted, it would scrap the deduction. At the moment teacher’s write-off is estimated to cost about two billion dollars, and if the republicans eliminate such deductions, then they are more likely to offset the revenue loss from wealthy individuals and also simplify the tax code.
One of the similarities between the Senate and House bill is that they eliminate a lot of deductions while at the same time reducing marginal tax rates. According to experts, the legislation is likely to reduce tax for some households but not all of them. Despite the sentiments made by the experts, the Republicans believe that it is a win-win situation for all. However, it’s important to note that the few differences between the two bills can lead to a vote in the Senate this week.
It’s expected that the Senate bill will likely to double the educator deduction to five hundred dollars as opposed to eliminating it. Regardless of the discussion made by the two chambers, they need to settle on one legislation before presidential assent. According to Engel Suzanne, a language and speech pathologist who works at St.Louis she spends an average of five hundred dollars annually on what she needs for her job.
She also firmly believes that she’s going to be better off with lower taxes because she and her husband have taken various itemized deductions for state and local taxes as well as mortgage interest payments. The liberal center on budget and policy practice notes that the Republican tax bill touches on the education policy in different ways. For instance, if those who earn more cannot deduct state income taxes, and the opposition of such charges end up growing, then it can have a massive impact on the critical source of funding for most public schools.