Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
the deductions lines (40 std or itemized ded..line 42 exemptions (which will be eliminated)). come BEFORE your final TAXABLE INCOME
under the new proposal the BRACKETS don't start until 24k (MJ)
so 114k total income....minus 24k sts ded...equals 90k of taxable income.....
when you go to the brackets it is prorated ...just like currently...except currently the 10$ brackets STARTS at $1....according to the new brackets..the first rate (12%) starts at 24k
The brackets start at zero, but everyone has some sort of deduction. If you are single the 12% applies after 12K, for married after 24K. If you itemize it applies after whatever you write off. It is a slight of hand by the writers. So for our typical married couple with standard deduction the 12% rate applies on whatever they make in excess of 24K up to 90K (only 66k) where the next rate kicks in. Current tables are based on taxable income after all deductions are taken.
Well, if we need this many posts about it, it's surely not going to be done in 5 minutes on a postcard.
Basically it's income redistribution. Their goal is to take more from the blue/successful/wealthy/educated states and give it to the others. For example, someone with a 1500 Sq. Ft house in the Bay Area will only get to deduct about 1/2 their mortgage interest, while the dude with a 5,000 SF McMansion in Texas will get covered in full.
But most of it isn't about we little people - it's corporate breaks so CEO's can make more money. You see - they are hurting bad. They need more....and therefore we need this program.
The brackets start at zero, but everyone has some sort of deduction. If you are single the 12% applies after 12K, for married after 24K. If you itemize it applies after whatever you write off. It is a slight of hand by the writers. So for our typical married couple with standard deduction the 12% rate applies on whatever they make in excess of 24K up to 90K (only 66k) where the next rate kicks in. Current tables are based on taxable income after all deductions are taken.
OK. At what income does a married couple hit the 25% marginal tax rate then?
The brackets start at zero, but everyone has some sort of deduction. If you are single the 12% applies after 12K, for married after 24K. If you itemize it applies after whatever you write off. It is a slight of hand by the writers. So for our typical married couple with standard deduction the 12% rate applies on whatever they make in excess of 24K up to 90K (only 66k) where the next rate kicks in. Current tables are based on taxable income after all deductions are taken.
no
current tax brackets
single
income 0-9,325..........10%
9,325-37,950.............15%
37,950-91,900...........25%
91,900-191,650.........28%
191,650- 416,700......33%
416,700-418,400.......35%(bracket is so small)
418,400+..................39.6%
married
income 0-18,650..........10%
18,650-75,900.............15%
75,900-153,100...........25%
153,100-233,350.........28%
233,350- 416,700......33%
416,700-470,700.......35%(bracket is so small but not as small as single)
470,700+..................39.6%
HOH
10%....$0 to $13,350
15%....$13,350 to $50,800
25%....$50,800 to $131,200
28%....$131,200 to $212,500
33%....$212,500 to $416,700
35%.....$416,700 to $444,500 (again this is a small bracket)
39.60%..$444,550+
new proposed rates
12%: $12,000 - $45,000 for individuals ($24,000 - $90,000 for married taxpayers)
25%: $45,001 - $200,000 for individuals ($90,001 - $260,000 for married taxpayers)
35%: $200,001 - $500,000 for individuals ($260,001 - $1 million for married taxpayers)
39.6%: $500,001+ for individuals ($1,000,001+ for married taxpayers)
no-body has mentioned HoH..so I am not sure what that will mean
the deductions lines (40 std or itemized ded..line 42 exemptions (which will be eliminated)). come BEFORE your final TAXABLE INCOME
under the new proposal the BRACKETS don't start until 24k (MJ)
so 114k total income....minus 24k sts ded...equals 90k of taxable income.....
when you go to the brackets it is prorated ...just like currently...except currently the 10$ brackets STARTS at $1....according to the new brackets..the first rate (12%) starts at 24k
So, on middle/upper middle class families with kids, there will be a significant tax increase. And before anybody starts quoting child credits, they tend to disappear very fast with income, so even if the amount is increased, it is not going to do much.
Now, the exemptions (under the current law) start to phase away at much higher incomes.
current tax brackets
single
income 0-9,325..........10%
9,325-37,950.............15%
37,950-91,900...........25%
91,900-191,650.........28%
191,650- 416,700......33%
416,700-418,400.......35%(bracket is so small)
418,400+..................39.6%
married
income 0-18,650..........10%
18,650-75,900.............15%
75,900-153,100...........25%
153,100-233,350.........28%
233,350- 416,700......33%
416,700-470,700.......35%(bracket is so small but not as small as single)
470,700+..................39.6%
HOH
10%....$0 to $13,350
15%....$13,350 to $50,800
25%....$50,800 to $131,200
28%....$131,200 to $212,500
33%....$212,500 to $416,700
35%.....$416,700 to $444,500 (again this is a small bracket)
39.60%..$444,550+
new proposed rates
12%: $12,000 - $45,000 for individuals ($24,000 - $90,000 for married taxpayers)
25%: $45,001 - $200,000 for individuals ($90,001 - $260,000 for married taxpayers)
35%: $200,001 - $500,000 for individuals ($260,001 - $1 million for married taxpayers)
39.6%: $500,001+ for individuals ($1,000,001+ for married taxpayers)
no-body has mentioned HoH..so I am not sure what that will mean
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
