I have no cue why is in the tax bill but I have said from the beginning that if you currently pay taxes, your tax will go up.
Yeah, the first $9,275 of taxable income times the additional 2% tax equals $185, turning the initial $165 tax cut into a $20 tax hike. Those who pay taxes at the middle or the bottom will get screwed if they don’t fix the plan. Those at the top may still realize savings, but the bottom rate should not be raised.
Under Trump’s original plan, while he was a candidate, the first $25,000 for singles, and $50,000 for couples was exempt from taxes. Then the brackets were set at 10%, 20% and 25%. Those in the 10% bracket would keep most of their deductions, while those in the 20-25% brackets would lose most of them. This resulted in big savings at the bottom and less deductions needed at the top. Too bad it got compromised.
https://blackandcenter.blog/2015/11/27/trumps-dynamic-tax-policy/