A letter to the ChicagoSunTimes.com:
Twenty-eight years ago, I became a Chicago firefighter because I believe it’s important to extend a hand to those in need. My career path has given me financial stability, regular time off to spend with my family, and the chance to give back to my community.
Today, with two kids — one preparing to head to college and the other a junior in college — I’m especially grateful for the opportunities that this career has given me and my family.
Like me, most working people would be happy to see a few extra dollars in their paycheck each month. So it sounded like good news when President Trump signed the new tax bill into law, which Republicans in Congress promised would lower taxes for everyday Americans.
As promised, my paycheck has gone up by about $175. But when I went to see my accountant this year to go over my taxes, I found out that instead of getting a $3,000 refund like usual, I’ll owe more than $1,500 in taxes next year beyond what was already withheld — all on the same income. I was so shocked I asked my accountant to check again. But he came back with the same math and that same unexpected number.
That’s when I realized that the GOP’s plan is a classic bait-and-switch. And everyday Americans like my family are going to pay the price very soon.
Thanks to a cap on deductions for state and local taxes (SALT) — deductions that benefit many middle and upper-middle class families — and other changes to deductions, many hardworking Americans will find themselves paying more in 2019. Instead of the refunds we’re accustomed to, we’ll be the ones writing checks.
The GOP tax plan added nearly $1.5 trillion to the deficit, while slashing taxes for the very wealthy and big corporations. According to the Tax Policy Center, 83 percent of the tax bill’s cuts will go to the top 1 percent in our country. Ending SALT deductions is a way for the GOP to help raise revenue to cover the cost of those cuts — leaving working families like mine to foot the bill for tax giveaways to those who need them least.
Everyday Americans are paying in other ways, too. These tax cuts for the wealthy are being used to justify cuts to programs that help communities, including the one where I grew up and continue to serve as a firefighter today.
The hidden reality of the GOP tax plan is that most working and middle-class taxpayers will see their taxes go up over the next 10 years. Millions more will face cuts to programs that help them cover the basics. Republican legislators are hoping we won’t notice until 2019, after we cast our ballots in the 2018 midterm elections.
I’m not fooled that easily. Working Americans aren’t fooled that easily. We don’t pay taxes to help multinational corporations give their shareholders bigger payouts or to ensure wealthy people can add millions more to their bank accounts.
As a firefighter, I don’t mind doing my part to lift up my community, whether it’s responding to emergencies or paying my fair share in taxes. But I believe that politicians, the very wealthy, and big corporations should be doing their part, too — not forcing those of us who put in the work and risk our lives every day pay to cover their tax breaks.
Chicago Firefighter Gary Chavarria lives in Avondale.
thanks Dan
#1 by Sam on April 21, 2018 - 9:35 AM
Lets not forget the “windfall” tax that we firefighters pay on our social security for those of us that worked side jobs or even had a 2nd career for many years. This little gem was introduced by Dan Rostenkowski (D-Illinois) and although there has been several attempts to repeal this unfair tax by other Democratic lawmakers, the legislation goes nowhere under current Republican control and has not been repealed or considered by either party since the laws enactment. This tax costs firefighters, police officers, teachers, and anyone who has a municipal pension that did not withhold social security taxes about 40% of any social security benefits to which they are ENTITLED to by way of working side jobs or a career after their municipal careers are over. Its called a “windfall” but those benefits are EARNED and paid for by those of us that paid the full amount of working quarters into the social security system. Its just our politicians way of saying thank you for our service. Take some time and write your legislators and encourage the repeal of this tax. You will be glad you did when you go on pension and find yourself paying your usual taxes, having your earned social security benefits reduced by 40+ percent and then pay more taxes on what is left on your social security on top of it all!! No matter what political party you associate yourself with, watch your legislators…like a hawk.
#2 by Jim on April 21, 2018 - 8:57 AM
The new tax plan does not take effect till you pay taxes next April for 2018. The taxes you just paid were for 2017. So your blame is currently mis-directed.
The Cap for SALT is 10k. Doing a quick check of public records using the writers name and given location his property tax bill is below the cap and will not be affected by SALT caps as he claims.
Time for a new Tax Guy Gary
#3 by Tom Foley on April 21, 2018 - 3:18 AM
If he is getting $175 extra per paycheck and let’s assume two per month, that’s $4200 more he is earning. $3000 of that is the equivalent of his previous refund, he now has $1200 left. If he states he will owe $1500 in taxes, he will be paying $300 more in taxes in the end.
#4 by Gary on April 21, 2018 - 1:38 AM
Don’t know what happened to you, but my refund would of been double if the tax plan was in place for this year. Haven’t changed any deductions, and I made more an hour than last year. I live in Chicago, and I consider myself to be in the middle class, and would never vote Democrat as they are running this once great city into the ground. I may be wrong, but taxes for 2017 are not affected by the tax cuts President Trump signed, and that was from a CPA that’s has been doing my taxes for years.
#5 by Dan on April 20, 2018 - 10:00 PM
To Bob, Arizona maybe a “taker” but since the federal government owns the vast majority of land, have several large Indian reservations, military bases and we are on the Mexican border, so I guess we are takers.
Or perhaps we are a mostly conservative state and a right to work state, we keep our government costs down.
#6 by Joe Smith on April 20, 2018 - 9:46 PM
In Chicago, as in many large metropolitan areas, poverty and it’s attendant social problems are concentrated in the central city. This increases the demand for tax funded city services, fire and police in particular, while simultaneously undermining the tax base and forcing the local government to either curtail services or raise the tax assessment rate.
#7 by Bob on April 20, 2018 - 8:23 PM
Fair? Really?
There are states the are “givers” and those that are “takers”. Arizona is a “taker” state. For every $1 you pay in federal taxes Arizona gets back better that $1.50. Illinois resident get back $.50 for each dollar. This allows Arizona to keep their taxes artificially low while Illinois residents tax dollars subsidize Arizona citizens. Just sayin. Looks like this firefighter is not only doing his part to help the citizens of Chicago but Arizona too. Maybe you should just say “thank you”.
#8 by Joe Smith on April 20, 2018 - 8:05 PM
This is only the beginning. The deficit resulting from this “tax reform” bill will likely be used to justify cuts in social security and other programs that benefit the working class. Residents of areas that have higher state and local taxes will undoubtedly pressure their elected officials to reduce the tax levy, which may lead to budget reductions affecting a wide cross section of services. Elected officials in many areas already hold public employees up as scapegoats for budget problems, and this tactic is likely to become more widespread. Nobody really likes to pay taxes, but most people like the services that their taxes pay for. Elected officials need to be honest about the cost of providing services and about the cuts that will be necessary if adequate funding is not provided. I am a retired public employee with 32 years of service, and my employer regarded untruthfulness as a grave disqualification for service and cause for dismissal. Regrettably, elected officials are not held to this standard.
#9 by Alex - CPA on April 20, 2018 - 6:04 PM
His post is actually what most middle class and all lower class will experience. Sorry Dan, this will affect everyone including your state.
REMEMBER IN NOVEMBER!
#10 by Dan on April 20, 2018 - 5:02 PM
So, let’s talk fairness.
I live in Arizona and the same kind of house in AZ is probably half the cost of a house in Chicago and the taxes are much, much lower.
So, why should the writer have more taxes deducted from his federal taxes than someone in Chicago?
The writer chooses to live and work where the local and state government terribly waste money and that includes wasteful spending in the fire department.