The GOP's turd of a tax bill
November 2, 2017 at 4:14 pm
(This post was last modified: November 2, 2017 at 4:15 pm by Jackalope.)
As expected, it's a big giveaway to the rich and will screw some people who aren't exactly rich.
http://money.cnn.com/2017/11/02/news/eco...index.html
Highlights of where the screw hits individuals:
Do you itemize and live in a state with high state, local, or property taxes? The two former are going away, the latter is capped.
Have no fear though, the standard deduction is "doubling", but wait, they're scrapping the personal exemption and that "doubling" will be offset by an increase in taxable income by $4050 for yourself, your spouse, and each of your children. Have more than one child? That wipes out any effect the increase standard deduction provides - some of which *may* be offset by an increase in the Child Tax Credit, that is, unless your income is low enough that the EITC wipes out your ability to actually claim the new (non-refundable) portion of the CTC. To add insult to injury, lower income families currently in the 10% bracket will now be in a 12% bracket - and combined with the loss of the personal exemption...well, do the math.
Yep, the brackets are moving - of particular interest is the 39.6% bracket. In 2017, the 39.6% bracket starts at $418K-444K depending on filing status, in the GOP bill the bracket moves to $500K-1M. A married couple with $1M in taxable income would have $556K less income taxed at 39.6% - which translates to a tax cut of more than $25K compared to the 2017 tax year. If that's not a tax cut for the wealthy, I don't know what is.
Don't even get me started on the corporate giveaways.
I did the numbers for my own tax situation, and assuming nothing else changes, accounting for the change in tax brackets, loss of deductions and personal exemptions, my tax bill actually goes up by a considerable amount. I would have almost exactly the same amount of income taxed at my highest marginal bracket (25%), and the tax on what is below that bracket increases by over $1200 due to the loss of deductions/exemptions. I am hardly rich.
Thanks, Obama!
Write or call your congressperson, people.
http://money.cnn.com/2017/11/02/news/eco...index.html
Highlights of where the screw hits individuals:
Do you itemize and live in a state with high state, local, or property taxes? The two former are going away, the latter is capped.
Have no fear though, the standard deduction is "doubling", but wait, they're scrapping the personal exemption and that "doubling" will be offset by an increase in taxable income by $4050 for yourself, your spouse, and each of your children. Have more than one child? That wipes out any effect the increase standard deduction provides - some of which *may* be offset by an increase in the Child Tax Credit, that is, unless your income is low enough that the EITC wipes out your ability to actually claim the new (non-refundable) portion of the CTC. To add insult to injury, lower income families currently in the 10% bracket will now be in a 12% bracket - and combined with the loss of the personal exemption...well, do the math.
Yep, the brackets are moving - of particular interest is the 39.6% bracket. In 2017, the 39.6% bracket starts at $418K-444K depending on filing status, in the GOP bill the bracket moves to $500K-1M. A married couple with $1M in taxable income would have $556K less income taxed at 39.6% - which translates to a tax cut of more than $25K compared to the 2017 tax year. If that's not a tax cut for the wealthy, I don't know what is.
Don't even get me started on the corporate giveaways.
I did the numbers for my own tax situation, and assuming nothing else changes, accounting for the change in tax brackets, loss of deductions and personal exemptions, my tax bill actually goes up by a considerable amount. I would have almost exactly the same amount of income taxed at my highest marginal bracket (25%), and the tax on what is below that bracket increases by over $1200 due to the loss of deductions/exemptions. I am hardly rich.
Thanks, Obama!
Write or call your congressperson, people.
