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Trumps original tax cut dropped the tax rate from 25% to 22% on the $39,000-$80,000/year range. They are now looking at dropping that to 15%.
Of course, because it's a WP article we have to have divisiveness: "The plan would likely aim to bring down to 15 percent the rates for those who earn between $30,000 and $100,000, Moore said. (The current marginal tax rate for someone making $90,000 is 24 percent.) Doing so would give tax relief to the middle class and the rich, since the rich also pay marginal taxes on the lower rates.
They fail(or vaguely mention) that the various tiers of taxation apply to only that range of income. So no matter your income level, you'll pay 10% in the lowest income tier, then 12%, then 22%, and so on. It used to be such that when you entered the next tax tier, that % would apply to your entire income, and what a sham that was. This happened to me many years ago. I got a raise, but took home less because it bumped me up the next tier to a higher %.
I really think that with the increased costs of housing and medical premiums/expenses the middle class is dealing with, that a reduction in the middle class rate is justified. I'm not sure 15% is the answer, maybe 18% would be more doable. Yes our deficit has grown, but personal income taxes collected are at RECORD HIGHS, so I don't want to hear "more taxes". How about "less spending".
Trumps original tax cut dropped the tax rate from 25% to 22% on the $39,000-$80,000/year range. They are now looking at dropping that to 15%.
Of course, because it's a WP article we have to have divisiveness: "The plan would likely aim to bring down to 15 percent the rates for those who earn between $30,000 and $100,000, Moore said. (The current marginal tax rate for someone making $90,000 is 24 percent.) Doing so would give tax relief to the middle class and the rich, since the rich also pay marginal taxes on the lower rates.
They fail(or vaguely mention) that the various tiers of taxation apply to only that range of income. So no matter your income level, you'll pay 10% in the lowest income tier, then 12%, then 22%, and so on. It used to be such that when you entered the next tax tier, that % would apply to your entire income, and what a sham that was. This happened to me many years ago. I got a raise, but took home less because it bumped me up the next tier to a higher %.
I really think that with the increased costs of housing and medical premiums/expenses the middle class is dealing with, that a reduction in the middle class rate is justified. I'm not sure 15% is the answer, maybe 18% would be more doable. Yes our deficit has grown, but personal income taxes collected are at RECORD HIGHS, so I don't want to hear "more taxes". How about "less spending".
The best part about threads like this is watching the deadbeats get all bent out of shape that tax cuts only benefit those who pay taxes.
This is true. Those in the low income brackets typically qualify for ~$1,000/month or more in subsidized housing, food stamps, and free medical, while only paying $3,000 or less in taxes (which they also typically get back in their return). However, I'm not going to finger point at the poor, but I will finger point at the state and federal systems that FAIL to provide incentive for "moving up the income ladder".
A year ago August, Trump promised a big tax cut for the middle class before the midterms. Too bad neither his Admin nor Congress knew what he was talking about.
POTUS has no authority to change the tax code. Only Congress can do that.
Ah deficits, schmecifits. Lets toss our Grandkids under the bus and roll around in the rebates.
Right.
Nah, I prefer more responsible tax policies written by and for adults.
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