Posted on 11/02/2017 7:01:18 AM PDT by rb22982
WASHINGTONHouse Republicans, seeking the biggest transformation of the U.S. tax code in more than 30 years, aim to permanently chop the corporate tax rate from 35% to 20%, compress the number of individual income tax brackets, and repeal the taxes paid by large estates starting in 2024, according to a detailed summary of the plan reviewed by The Wall Street Journal.
To partly offset that lost revenue, Republicans plan to curtail the deductions individuals take for state and local tax payments and the ones businesses get for the interest they pay on debt. But the plan being released Thursday morning stops short of touching other popular tax breaks that were being considered for change, such as the ability of individuals to park up to $18,000 a year in pretax funds into 401(k) savings accounts.
The plan, named the Tax Cuts and Jobs Act, calls for leaving the top individual tax rate at 39.6%, but pushing the income threshold for that rate to $1 million for married couples. The House Ways and Means Committee plans to consider the bill next week with the aim of turning it into law by Christmas and having most of it take effect in 2018.
(Excerpt) Read more at wsj.com ...
We should tax poverty. Drive all of the poor into tax shelters in the Cayman islands.
Be nice if we could see the graph.
“To partly offset that lost revenue”
This line of thinking is EXACTLY the problem. They shouldn’t look to offset the lost revenue. They should SPEND LESS.
The corporate tax rate should be zero.
In other words, make every corporation the equivalent of a Sub-Chapter S.
Then you can tax the shareholders to raise a more-or-less equivalent amount of money, while at the same time boosting economic efficiency.
Alternatively, you could get approximately the same good results if you keep the corporate tax rate where it is but allow corporations to deduct dividends as a current expense.
No Kidding it is just a Tarrif
Married - first $90k is 12%. $90.001k to $260k is 25%. $260.001k to $1m is 35%. Above that is 39.6%. Divide all these by two for single filers except the 25% top of $260k goes to $200k rather than $130k.
Cutting the corporate tax is like a flat-tax cut for everyone as consumers pay the tax since it’s a business expense.
Ping
I thought there was a 0% tax bracket?
The first $24,400 is 0% for a married couple, half that for single filers. You’d need to adjust the brackets I listed for that. More if you can still itemize (need interest and property tax to be over those amounts - not a lot of people have that but 3-5% of filers probably will)
Net Income old new diff % $10,000 $0 $- $- 0% $20,000 $800 $- $800 4% $30,000 $1,800 $720 $1,080 4% $40,000 $3,268 $1,920 $1,348 3% $50,000 $4,768 $3,120 $1,648 3% $60,000 $6,268 $4,320 $1,948 3% $70,000 $7,768 $5,520 $2,248 3% $80,000 $9,268 $6,720 $2,548 3% $90,000 $10,978 $7,920 $3,058 3% $100,000 $13,478 $9,120 $4,358 4% $125,000 $19,728 $13,550 $6,178 5% $150,000 $25,978 $19,800 $6,178 4% $175,000 $32,525 $26,050 $6,475 4% $200,000 $39,525 $32,300 $7,225 4% $225,000 $46,525 $38,550 $7,975 4% $250,000 $53,757 $44,800 $8,957 4% $275,000 $62,007 $51,050 $10,957 4% $300,000 $70,257 $58,900 $11,357 4% $325,000 $78,507 $67,650 $10,857 3% $350,000 $86,757 $76,400 $10,357 3% $375,000 $95,007 $85,150 $9,857 3% $400,000 $103,257 $93,900 $9,357 2% $425,000 $111,507 $102,650 $8,857 2% $450,000 $120,183 $111,400 $8,783 2% $475,000 $128,933 $120,150 $8,783 2% $500,000 $138,511 $128,900 $9,611 2% $600,000 $178,111 $163,900 $14,211 2% $700,000 $217,711 $198,900 $18,811 3% $800,000 $257,311 $233,900 $23,411 3% $900,000 $296,911 $268,900 $28,011 3% $1,000,000 $336,511 $303,900 $32,611 3% $1,100,000 $376,111 $342,396 $33,715 3% $2,000,000 $732,511 $698,796 $33,715 2% $3,000,000 $1,128,511 $1,094,796 $33,715 1% $5,000,000 $1,920,511 $1,886,796 $33,715 1% $10,000,000 $3,900,511 $3,866,796 $33,715 0%
Bill text for the Tax Cuts and Jobs Act is here: https://waysandmeansforms.house.gov/uploadedfiles/bill_text.pdf
Section-by-section summary is here:
https://waysandmeansforms.house.gov/uploadedfiles/tax_cuts_and_jobs_act_section_by_section.pdf
This doesn’t look right. I looked at last years tax tables. Using the round figure of an Adjusted Gross Income(AGI) = $100,000 the federal tax on that AGI amount was in the 16K range.
Does net income = adjusted gross income 1040 line 43?
That is after the standard deduction. MY calculation with $112,000 shows old tax of $16,478 and new tax of $10,560.
The first column is the income before deduction, since it is different between old and new.
I should have called it gross income (before deductions)
What you are saying makes no sense and I do my own taxes.
Look at line 43 of your old 1040. That is your taxable income after deductions.
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