Senate Bill
The Senate bill would also eliminate personal exemptions. As was the case with HR 1, the Senate bill will attempt to ease the pain on families by increasing the Child Tax Credit to $1,650, a $50 increase over the House proposal but a $650 rise when compared to current law. The Senate proposal provides protection for the upper reaches of the middle class that is missing from the House bill, however, by increasing the income levels at which phase-out of the credit begins to $500,000 (if single, $1,000,000 if married). This will enable many more taxpayers to make up for lost personal exemptions with the enhanced CTC as compared to HR 1.
What about the adults in the family? They're raising the standard deduction by $12000, they say. The increased child tax credit will make up for the loss of the standard deduction, they say. Well there is no tax credit for adults so the $12,000 increase is offset by the loss of $8100 in personal exemption. Each child cuts that deduction by $4050 and the increase in child tax credit may offset it up to a point. But the larger the family, especially when the income in over $80,000 the more likely you are to have your taxes go up.
You forgot to include this part:
“The Senate proposal provides protection for the upper reaches of the middle class that is missing from the House bill, however, by increasing the income levels at which phase-out of the credit begins to $500,000 (if single, $1,000,000 if married). This will enable many more taxpayers to make up for lost personal exemptions with the enhanced CTC as compared to HR 1.”
Look, I was responding to how Wayne Root framed his questions. There’s more to it than he was saying.
Would I prefer a low flat tax - yes! But this “populist” phrasing of Root was insulting and sounds more like the liberals and never Trumpers....