If not when we see the actual new tax rates?
What about the $500/dependent credit? Is is gone?
No exemptions?
Yes, the proposed on that link are the final brackets. 2k/kid child tax credit. Personal exemption is gone and std deduction 2x. Salt capped at 10k.
New plan will cost me $2500, due to New Hampshire’s high property tax.
New plan will cost me $2500, due to New Hampshire’s high property tax.
Jokers have the 35% bracket starting at less than half the income (for individuals) that it did in 2017. Sick.
They should do a fix through budget reconciliation next year: 12% for incomes covered by FICA taxes, 25% for portion if income above FICA to $1,000,000, then 33% for portion above $1,000,000. Same standard deductions, re-instate the personal exemptions for self, spouse and all dependents. SALT deduction not capped at $10,000, but equal to 1/2 * (income + sales + property). UNLIMITED charitable contribution deduction. Corporate down to 15%, with repatriation down to 5%. Head of household multipliers = 1.5X, not 1.33 or whatever happy horsecrap they’re using.
True tax reform, baby!
https://www.calcxml.com/calculators/trump-tax-reform-calculator
In theory, the new withholding rate tables should take effect with your first paycheck in 2018. However, it could take some time before your employer and payroll companies like ADP and the like can update their software. I’m sure they are working OT to get it done, but in my experience as a PR professional, don’t be surprised if you don’t see the new rate tables reflected in your paycheck right away.
What about the $500/dependent credit? Is is gone?
Personal exemptions are gone. “Today you're allowed to claim a $4,050 personal exemption for yourself, your spouse and each of your dependents. Doing so lowers your taxable income and thus your tax burden. The GOP tax plan eliminates that option.”
But the standard deduction doubles. For me as a single person, I win, I’m not so sure about families with many children, however the child tax credit increases “The credit would be doubled to $2,000 for children under 17. It also would be made available to high earners because the bill would raise the income threshold under which filers may claim the full credit to $200,000 for single parents, up from $75,000 today; and to $400,000 for married couples, up from $110,000 today.”
This is a pretty good overview.
http://money.cnn.com/2017/12/15/news/economy/gop-tax-plan-details/index.html
Is exploited by the Democrats and allows them to say low wage earners get nothing.
When you think about it, if people in this tax bracket had to pay 0%, they would take a huge hit once they crossed that threshold.
In order to make it fair ... that workers at this low wage pay less taxes, they would have to create about 10 bracket just for $1000 to $10,000 per year earners.
The point is, no matter what the schedule, the moment they cross the taxable threshold they take a giant hit. Like if they made $1-$25,000 0% taxes, and $25k-$50k %10 people would have to be earning 28k just to make as much as they made at $24,999.
They try and solve problems like these with deductions.
If the following excerpt is true, the Republicans may want to fix this:
Married? Middle class? Californian? Get ready to be a loser under Trump’s tax plan
BY THE EDITORIAL BOARD
sacramento bee
DECEMBER 20, 2017 05:54 PM
UPDATED 6 HOURS 1 MINUTES AGO
http://www.sacbee.com/opinion/editorials/article190933689.html
For example, heaven help married Californians. The new tax bill includes a marriage penalty by capping at $10,000 the amount of state income and local property taxes that filers can deduct from their federal taxes.
People wed for love, not money, but say you’re an unmarried couple and earn a combined $150,000. Each partner would file separate income tax returns and claim $10,000 each in state and local tax deductions, $20,000 in total. Good for them.
Say you’re a married couple with a couple of kids and a mortgage, earning that same $150,000. You’re making ends meet but not eating at fancy restaurants. Under the tax bill, married couples will be able to deduct no more than $10,000 in state income and local property taxes, half of what an unmarried couple could claim.
It’s one of many ways that Trump’s tax bill, the one that 12 of 14 California House Republicans supported, will harm Californians in the middle.
They had to pass the bill in order for the peasants to know what was in it.
Just like Øbummer”care” eight years ago.
Lesson: Beware the final months of the first year of a new President’s reign.
So what’s up with the change in business deductions that we’ve been hearing about? Won’t have a chance to ax my accountant about it until well after New Year’s.
Next year I break even... in 2019 I pay almost $1,500 more given my daughter turns 18...
Not a tax break if you live in a high tax state.... but for most it is....
Just another reason to leave NY after I retire....