Actually the WSJ has published an infographic that spells this out:
Individuals:
39.6% - +$500K
35.0% - $200K to $500K
25.0% - $45K to $200K
12.0% - Up to $45K
Married Filing Jointly:
39.6% - +$1M
35.0% - $260K to $1M
25.0% - $90K to $260K
12.0% - Up to $90K
The SALT deductions go away and the property tax deduction are capped at $10K with the mortgage interest deduction being capped on loans up to $500K.
Those cannot be right.
There is a bunch of income that is not taxed so does the 12% bracket start at $45K rather than up to $45K?
If that turns out to be true, I will be totally screwed.
So there is no 0% bracket?
Based on those brackets...quick back of the envelope for me as a married joint filer, with 188K gross income, itemizing (but with a 3% mortgage because I refi-ed at exactly the right time), I look to save right about $4,000 per year. So it is not true that everyone between 100K and $260K gets a tax hike. I get a modest cut...but then I live in Nevada and the SALT thing is meaningless to me (my deduction of sales taxes was barely over $1,000 per year).
If it stays where that is projecting its going to hit the middle class pretty solidly. We will have to wait & see how it shakes out.
Does the WSJ infographic spell out whether the state sales tax deduction remains? I’m confronted with a paywall when I try to look.
Thanks