This is the best and most thorough examination of the GOP tax proposal that I’ve seen, and confirms the immediate dread that I felt when they first announced this plan. Under the current plan, we get three exemptions, one each for me, my wife, and one child, which total $12,150. And we already itemize our deductions to the tune of around $19,000. So, our deductions will only rise by about $5,000, but we are losing $12,150 in exemptions.
Yes, they are raising the break points at which your income will hit the next tax rate, but I don’t see how that is going to account for the increase in taxable income. And we are certainly NOT “rich”, but squarely in the upper portion of the middle class in income. More importantly, we are in the exact demographic profile that most strongly supported President Trump and voted for him. It’s almost as if this plan is designed to punish the most ardent Trump supporters. I think Brady and his crew think they are going to pull the wool over our eyes, but people are onto them.
“It’s almost as if this plan is designed to punish the most ardent Trump supporters.”
Ding!
They want to punish us, and they want us to vote for our own punishment.
That’s what’s considered “good legislation” inside the beltway.
I agree, I have done a similar analysis for my individual situation (gross income around 100 K) and I receive a small decrease under the senate plan, but because I lose medical deduction under the house plan I experience a small increase. In other words the tax plan is a big nothing for me at my tax rate and the only true benefit may come from the fact that corporation taxes are reduced. (The economy may continue to get better.)
I agree with the final paragraph of the article that the correct standard deduction would be much higher if the plan were to actually do what was promised.
Now we need to ask what is wrong with Congress? Is this a confusing method for the Chamber of Commerce to tell Trump that he can win any election he wishes but he does not get to change the way business is done?