The chained CPI: Another secret tax hike for the middle class slipped into the GOP tax bills
Posted on 11/21/2017 1:28:06 PM PST by Brown Deer
November 21,2017
202-224-4515, Katie Niederee & Julia Lawless
The Finance Committee tax overhaul delivers benefits directly to the working and middle class through doubling the standard deduction and the child tax credit, as well as lowering rates across the board. Take a look at the real world impact of the Senate plan:
Family of four earning $73,000
A family of four with income of around $73,000 (median family income) will see a tax cut of nearly $2,200.
Their tax bill will fall from what they pay today, around $3,683, to paying $1,499 next year—a reduction of $2,184.
This represents a reduction in their tax bill of nearly 60 percent.
Single parent with one child earning $41,000
A single parent with one child earning $41,000 will see a tax cut of nearly $1,400.
Their tax bill will fall from what they are paying today, around $1,865, to paying $488 next year—a reduction of $1,377.
This represents a reduction in their tax bill of nearly 75 percent, meaning that their tax bill next year will be just over one quarter of what it is today.
Married small business owners with income of $100,000
A couple earning $100,000, with $60,000 from wages, $25,000 in compensation from their non-corporate business, and $15,000 of business income, will see a tax cut of more than $2,850.
Their tax bill will fall from what they pay today, around $11,280, to paying around $8,425 next year—a reduction of $2,855.
This represents a reduction in their tax bill of more than 25 percent.
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Background
Since Hatch became chairman in 2011, the committee has held more than 70 hearings focused on reforming the nation’s broken tax code and has made numerous bipartisan efforts, including drafting option papers and forming working groups, to find consensus on tax reform. For more information about the Finance Committee’s history in the tax space, click here.
To view legislative text for the Tax Cuts and Jobs Act, click here.
A score of the bill may be found here.
A section-by-section of the Tax Cuts and Jobs Act may be found here.
My taxes will be going down by about 20%.
I won’t have to spend a couple of days with Turbo Tax.
I’m happy.
What about a single man making $100,000?
Frankly, I’d rather have my liberty back.
A few extra dollars in my pocket means little when the albatross of tyranny remains around my neck.
Tax Calculator
https://www.marketwatch.com/story/the-new-trump-tax-calculator-what-do-you-owe-2017-10-26
And the poor single schlub, he has to pay for it all?
I am not a government worker, never have been.
73k year in many places is a small apartment and a 10 year old car.
This post is like trying to heal the deaf and dumb...... :)
I don't know about guy, but this single gal with an income of about $100K is seeing her taxes go up by between $1500 and $3000. Depending on which version passes.
What about him? The links are all there.
and you believe that calculator? ;-)
“I would be better off getting a minimum wage job, and filing for EITC, and would come out ahead financially.
Or even better, brush up on my spanglish, add an “ez” to my last name, and Oregon would literally be throwing cash at me.”
Hey, that’s not a bad idea!
Thanks Brown Deer.
Hell yeah!!!
I’m looking at sending about $10,000 more to these retarded bastards to waste, and lets not forget about my $6,800 medical deductible, that these retarded bastards haven’t been able fix either.
There will be HELL TO PAY!!!!
The chained CPI: Another secret tax hike for the middle class slipped into the GOP tax bills
It's about a cabal of bankers and oligarchs like Mnuchin and Cohn (GOLDMANN SACHS TOO BIG TO FAIL BANKSTERS WHO ARE WRITING THIS BILL) who are hell bent on cutting the corporate rate to 20%, no matter what the consequences.
If they were smart, they would just cut the corporate tax rate and be done with it.
In 2016, corporations paid about 300 billion in corporate taxes , individual tax payers paid 1.6 TRILLION in income tax and 1.1 TRILLION in FICA and Medicaid.
The Government made about 900 billion in excise taxes, total tax receipts about 3.3 trillion.
Anybody who doesn't understand that corporate taxes are the SMALLEST portion of Federal Tax Revenues doesn't really have the facts necessary to weigh in on what these degenerate scumbags are up to.
I am all in for a lower corporate tax rate, but RAISING TAXES on working families to make up the difference and flat out lying about it is game changing.
So as long as YOU "get yours", it's okay, that many millions of others are going to be hurt by this tax INCREASE? WOW...dog in the manger!
I posted an article on the Chained CPI provisions of the GOP bill a couple of weeks ago.
The ONLY posts on that thread were about how all taxpayers would no longer have to “subsidize blue states”.
The level of, and desire for knowledge on Free Republic continues to crater.
nopardons wrote: “So as long as YOU “get yours”, it’s okay, that many millions of others are going to be hurt by this tax INCREASE? WOW...dog in the manger!”
More will be helped than will be hurt. Get over it.
“BS. My taxes are going UP with this abortion of a bill. I swear, if this gets signed into law, I’ll do everything in my power to vote every single one of these bastards out. I don’t care if democrats get in there to replace them, the repubs deserve to have their asses kicked if they raise taxes on this many middle class families”
AMEN!!!
this bill is an attack on all middle income tax payers. the elimination of most of the itemized deductions should be a deal killer to all those of our duly elected to represent us who vote them into office, and not as thank you gifts to those corporations who donate the fattest envelopes to their re-election campaigns.
so just as the cost of obamacare was being shouldered by all the healthy young people who had to sign up or pay a fine, this tax bill is being paid for by the average middle class taxpayer for the benefit of big permanent tax cuts for corporations and the wealthy. Touting this as a tax cut to all the middle class deplorables who elected Trump is the same as obama promising that you would save $2500 on your insurance premiums and could keep your doctor. This isn’t a tax cut, but a tax increase for the average American.
the standard deduction is being not quite doubled, but then they are eliminating the individual personal exemptions for yourself, your spouse and your dependents. so they give with one hand but take away with the other. in addition, they are eliminating the extra deduction for those over 65 or blind.
if you take the standard deduction, you cannot then itemize; therefore, giving up the normal deductions for medical expenses, long term care insurance expenses, state and local taxes, property taxes [under the senate bill], mortgage interest deduction limits, student loan interest deductions, moving expenses, alimony, dependent care assistance accounts, casualty and theft losses, unreimbursed job expenses and tax preparation fees.
Now look at its impact on the economic strata of taxpayers to see who benefits the most:
“...the highest-income taxpayers (0.1 percent of the population, or those with incomes over $3.7 million in 2016 dollars) would experience an average tax cut of nearly $1.1 million, over 14 percent of after-tax income. Households in the middle fifth of the income distribution would receive an average tax cut of $ 1,010, or 1.8 percent of after-tax income, while the poorest fifth of households would see their taxes go down an average of $110, or 0.8 percent of their after-tax income.”
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