Tax Reform

[Kane]

http://thehill.com/policy/finance/35898 ... 027-report

Pretty sweet. Looks like after those temporary increases (child tax credit, etc) phase out after the fifth year the benefits go from being marginal to an increase in taxes after ten years for those making under 50K.

So...even if they kept it in there we'd see nothing but a simplification of our filing while the top brackets would get a windfall.

Truly on the backs of the poor.

https://www.cbpp.org/research/federal-t ... orities-of

[John Galt]

[John Galt]

with no deductions a family making 90k under republican tax plan stands to be taxed at 10,800 per year. current rate is 16,360.50/year.

numbers are because 12% of 90k is 10,800. current tax plan is 0.25(90000-50800) + 0.15(50800-13350) + 0.1(13350), or 16,360.5

standard deduction of course is doubling, but there's already 6k relief right there

at 50k, since that's what you're talking about Kane, the numbers are current taxes, $6832, future taxes $6000 for a family making 50k, with zero deductions. with deductions...

only using standard deduction in old plan: $4927.50
only using standard deduction in new plan: $3120

that's an $1807.50 tax cut for a family making $50k, with no children. with children it's higher. do you think that someone making 50k a year would describe $1,807.50 as "marginal"? I mean that's over a third of their current taxes as far as i can tell. would you paying a third less in taxes think "huh, i got a very marginal tax cut this year"?

i feel like you should criticize it for what it is, not for what it isn't.

[Winchester]

Hmm I got $3,978 savings, assuming Filing Joint no kids and just standard. Extra deduction of $3,200 (24,000-12,700-4050-4050). So "old" taxable would be 93,200 ($10,452.50 plus 25% of the excess over $75,900) = $14,778 vs $10,800.

IDK what I did earlier but looks like I'd get a tax cut of $4,144, not the $2219 I said previously. So it looks like approx $4k in savings for a MFJ couple hitting the top of the 12% bracket in taxable income so AGI of $114K. Wash for quite a while after that till someone bumps up into the 28% bracket under the old system, then you start saving 3% again... between $153,100 to 260,000 taxable old vs new 25% limits.

Obviously one losing some deductions won't come out quite as well, but they shouldn't be hurt too badly. Say someone loses $16k in deductions because of state taxes and assuming they're in a 25% bracket it would be $4k about wash in tax savings. That would mean the person would have itemized deductions of $31,900 under the old system (31900+4050+4050-24000) to be at a break even.

[John Galt]

honestly, if the estate tax part is removed... the personal income tax changes are good i think, and they are geared towards low through middle class

[fstarcstar]

[fstarcstar]

[Kane]

[Kane]

I'm trying to get the same numbers as you guys...

https://www.marketwatch.com/story/the-n ... 2017-10-26

And after using everything I get a $200 difference on the hypothetical I drew up.

[John Galt]