HERE IS HOW PERRY’S TAX FORM WILL LOOK LIKE IN 2014:
YOUR INCOME : ________________
SUBTRACT: Exemptions: ______ X $12,500 : ____________
SUBTRACT: Mortgage Interest : ____________
SUBTRACT: Charitable Contributions : ____________
SUBTRACT: State & Local Taxes : ____________
SUBTRACT: Capital Gains and Dividends : ____________
YOUR TAXABLE INCOME: __________________ X 20%
TAXES OWED : __________________________
My only question is this — what counts as Exemptions?
Same as exemptions on income tax now.
Dependents.
You, spouse? , Each Child, possibly elderly parent that lives with you that you support.
OK, based on this data that I got from ABC News:
“The new flat tax preserves mortgage interest, charitable and state and local tax exemptions for families earning less than $500,000 annually, and it increases the standard deduction to $12,500 for individuals and dependents,”
Let’s calculate the taxes for a family of 4 (2 children), the average household income of which is $50,000, with a monthly mortgage interest of $15000/yr and living in say, Ohio ( where average state and local taxes are about 10%). Assuming the family is generous and gives $500 to the church or charity a year. Maybe the family invests in a dividend bearing stock which gives $600 a year
YOUR INCOME : $50,000
SUBTRACT: Exemptions: 2 X $12,500 : $25,000
SUBTRACT: Mortgage Interest : $15000
SUBTRACT: Charitable Contributions : $500
SUBTRACT: State & Local Taxes : $5,000
SUBTRACT: Capital Gains and Dividends : $600
YOUR TAXABLE INCOME: $3900 X 20%
TAXES OWED : $780.00