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IF they lower the bracket between the 32k-58k (single middle class) then it will make our life easier.. Anything lower than 32k needs to step up or have something done with that class..
The proposal is not fully formed so we can't fully evaluate the impact on all but I am middle class and can say that doubling the standard deduction will certainly be a tax cut for me and many like me.
It's impossible to say. Personal exemptions are eliminated, so the total amount of exempted income is not changed a lot. The devil is in the details of where the income breaks end up. The 15% bracket is gone, so the threshold for hitting 25% bracket is a huge deal for many people.
. the top 10% income pay 70% of taxes.
. the bottom 50% pay less than 3% of taxes.
. almost 50% of all citizens pay no taxes.
. tax rates on corporations worldwide average 22% while in the US it is 39%.
A complete revamp of the tax system is badly needed but there are so many special interest positions and lies presented to the public it is very difficult to progress without stupid political resistance.
Would be nice if you had a link for this. Multi millionaires and more are not paying a tax rate of 70%.
So far I am not crazy about it. Looks like most of the increase in the standard deduction is coming from eliminating personal exemptions for simplicity (not that I thought personal exemptions were a hard concept). By getting rid of the State and Property tax deduction, they have effectively eliminated the mortgage deduction for most people. Unless they really change this plan or massively expand the income subject to the lower rates, I think my taxes are going up.
As always the poor won't pay anything (they don't pay anything now) and it looks like most of the tax reduction is going to the really high income.
Would be nice if you had a link for this. Multi millionaires and more are not paying a tax rate of 70%.
Well to be fair the top 10% of wage earners made around 50% of all income in the US and in return the paid 70% of the income tax. It's called progressive taxation.
I looked at the proposal a bit last night and we are screwed. We have a lot of deductions that will be gone under this "plan". The increase in standard deduction doesn't even touch what we itemize. We will be paying much more in income taxes if this goes through. The joys of being middle class.....we get screwed every chance the government gets!
This is being promoted as "tax reform for the middle class". But surely even die-hard Trump fans can see this is just not true? Won't the biggest winners here will be very low incomes, and very high incomes?
Many in the middle class could see little benefit and in some cases could see their taxes increase. I would love to see serious tax reform but this plan just doesn't seem fair.
Certainly appears this way. And Trump saying "I will not do well under this new tax plan" is highly disingenuous. The plan eliminates the estate tax, which means his family will certainly do well, so he is being ridiculously literal to make it sound like wealthy people won't do well.
And of course, nobody really knows because he refuses to release his tax returns.
70% is too low. As any wealthy person could confirm for you, taxes as is barely effect the lives of the rich. It's the common man who is labored by them.
So far I am not crazy about it. Looks like most of the increase in the standard deduction is coming from eliminating personal exemptions for simplicity (not that I thought personal exemptions were a hard concept).
Yes, certainly that is not the part that requires simplification. It's all of the ways that different kinds of income interact with one another, phase outs of credits and deductions, the AMT. It's truly an abomination.
I would welcome true simplification even if I personally end up paying a little bit more, a system where I can determine my tax liability in an hour on one sheet of paper. I would save money on tax prep, not to mention the time, anguish, and confusion. I'm pretty sure this is not what we're getting, and certainly all of us remember the old joke about how to tell if a politician is lying
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