Posted on 11/15/2018 11:02:12 AM PST by Red Badger
IRS announces details of change in calculations required by tax law, meaning brackets and deductions now grow more slowly
WASHINGTON—Last year’s big tax cut is about to start shrinking.
The Internal Revenue Service on Thursday announced the tax code’s parameters for 2019, implementing a new method for making inflation adjustments that will result in higher tax payments—and government revenue—over time.
The shift will cost Americans $133.5 billion over a decade, according to Congress’s Joint Committee on Taxation.
The tax law enacted last year lowered tax rates and reduced tax burdens for most households in 2018. It also required the IRS to switch to a different, slower-moving measure of inflation to adjust a variety of tax-code features for rising prices.
The standard deduction, tax brackets and other items will still increase most years, but now they will usually climb more slowly than they would have under the old formula.
The result: More income gets taxed at all, or taxed at higher rates.
The bite starts as a nibble. In 2019, the standard deduction for a married couple will be $24,400. The deduction would have been $24,550 under the old inflation-adjustment method, according to calculations by the Tax Foundation, a conservative-leaning group.
In the 24% tax bracket, making the standard deduction $150 smaller than it otherwise would have been would cost a taxpayer $36 in higher taxes. That will be reflected on tax returns filed in early 2020.
The gaps widen over time. Many taxpayers got their largest benefit from the new tax law in 2018 and will watch it shrink annually.
“When you sit down and figure out your taxes, I don’t think you’re going to notice this amongst all the other noise,” said economist Jared Bernstein, a senior fellow at the left-leaning Center on Budget and Policy Priorities.
(Excerpt) Read more at wsj.com ...
“In 2019, the standard deduction for a married couple will be $24,400. The deduction would have been $24,550 under the old inflation-adjustment method”
I am not sure why Trump’s IRS is doing this. It is only $150 next year but will add up over time.
What is more troubling to me is the whole thing is temporary and will expire in a few years. Thank Congress for that.
if 36 dollars destroys MAGA, then MAGA wasn’t very G
The lord giveth. The lord taketh away. Blessed be the name of the lord. The state promises. The corruptoid politicians promise. The corruptoid politicians taketh away doubly. Cursed be the corruptoid politicians.
Thanks a bunch for posting this! I just updated my 401K to Roth IRA rollover calculations.
I never pay attention to any tax cut promises. I’m 68 years old and I’ve seen a lot of “tax cuts” over those years. So many, you’d think that by now none of us are paying any taxes at all.
Gee considering you are always whining at the GOP about the “debt” you should be ecstatic that your god, the Government, is going to be collecting more money.
Odd how you never notice the tax hikes that take your tax cuts away.
FR: Never Accept the Premise of Your Opponent’s Argument
Changes in tax law calculations amount to changing the law imo.
The major constitutional problem with the non elected bureaucrats running the IRS making changes to tax law is that the elected Congress is the only federal government entity that has the express legislative power to decide laws.
"Article. I. Section 1: "All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives."
In other words, the corrupt, post-17th Amendment ratification Congress, still left over from the lawless Obama Administration after midterm elections, is unsurprisingly still unconstitutionally front-ending “federal” legislative powers with non-elected federal bureaucrats, nullifying voter power and Pres. Trump’s veto power by doing so.
And by letting the IRS do their dirty legislative work for them, career lawmakers are able to protect their voting records so that they can fool low-information voters into reelecting them.
So corrupt lawmakers will once again let non elected bureaucrats outside the legislative branch get away with stealing what are actually state legislative powers to appropriate higher federal taxes for things that the feds have no constitutional authority to deal with.
"Congress is not empowered to tax for those purposes which are within the exclusive province of the States."—Justice John Marshall, Gibbons v. Ogden, 1824.
It’s too bad that many patriots evidently did not understand the significance of the 2018 midterm elections.
Patriots need to support Pres. Trump in leading the states to repeal the 16th and ill-conceived 17th Amendments, 17 the "broomstick of the wicked witch (Soros)."
Amen!
The democrats insisted that it be temporary, so that they could complain about it and blame it on republicans. At least that’s what some republicans claim.
Since 2000, the traditional CPI has increased by 45.7 percent, while the chained CPI has risen only 39.7 percent, a difference of 6 percentage points, according to the Tax Policy Center.
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