Posted on 12/02/2017 2:44:33 PM PST by Jim Robinson
Edited on 12/02/2017 2:54:27 PM PST by Jim Robinson. [history]
Updated.
I calculated federal income taxes for two hypothetical working class couples filing jointly under the new senate proposal compared to current law, taking the standard deduction in each case (see the pdf at source).
The first working class family has a combined income of $100,000 and if my calculations are NOW correct would owe $10,948 in federal income taxes under current law with an effective tax rate of 10.9%.
Under the senate proposal, this family's federal income tax would be cut to $8,739 with an effective tax rate of 8.7%. This is a substantial tax cut.
The second working class family has a combined income of $60,000 and would owe $4,948 in federal income taxes under current law with an effective tax rate of 8.2%.
Under the senate proposal, this family's federal income tax would be cut to $3,939 with an effective tax rate of 6.6%. This is a very substantial tax cut.
The tax cuts are even more dramatic if these families have children and can take the $1650 tax credit per child (compared to the $1000 per under current law).
If each of these working class families above have two children they get a tax credit of $1650 X 2
So the family earning $100,000 gets $3300 credit leaving a tax bill of $5,439 or 5.54% eff rate.
The family earning $60,000 gets $3300 credit leaving a tax bill of $639 or 1.4% eff rate.
Very substantial cuts!
Working class families with two children, earning $55,000 or less owe no federal income tax at all.
This will allow the vast majority of "working class" families to receive a substantial tax cut by simply taking the standard deductions.
“Where are TAX CUTS for EVERYONE? True REAGAN STYLE TAX CUTS?! They don’t exist in this legislation. Period. Full Stop.”
Yes, they do. Everyone gets a tax cut. Not a single person is getting their federal taxes raised.
However, we in the low SALT States have been subsidizing those in the high SALT States. That ends now.
If you want high SALT taxes, have them, but you won’t get to deduce them from your federal taxes, making the rest of us subsidize your local spending.
What you do in your State is your business, so stop trying to drag the rest of us into your high tax & spend States’ issues. If you don’t like your high SALT taxes them reduce them but stop demanded the rest of us pay federal taxes for you.
“He and the Republicans WILL however be responsible for massive tax hike that’s going to be imposed on MILLIONS and MILLIONS of people living in states such as mine”
That’s total bullsh*t. MILLIONS AND MILLIONS will NOT have their taxes raised. Very few will.
Again, what you pay to your State and local taxes is your business. The federal government is reducing your federal taxes. I could care less that your local government is taxing you the high amount that you want, but you no longer get to take it out of your federal tax returns so the rest of us have to pay more!
“usconservative”, my ass! You spend like crazy liberals in your State and local areas but then think you shouldn’t have to then pay federal taxes. Well, you do! We in the low SALT States have been subsidizing your socialism for far too long! Pay your own damned State and local taxes! Stop taking it out of your federal returns. We’re tired of your liberal mooching on the rest of us!
Thanks for taking the time to do this
Thanks.
There are a lot of conservatives in California.
Compared to my adult sons, I’m semi conservative. One, that leans to being a Libertarian is very conservative, and he has zero tolerance for anyone in political power, who tries to take away our freedoms.
Great work; Spot on. The disinformation being trumpeted in the MSM and dems is expected, and nobody believes them anymore. But we’re also getting some of it here on FR. We combat misinformation with truth, as you just did.
This tax cut will cause the economy to EXPLODE!!!! I’ve lived through 5%+ GDP growth (thank you, RR). It is a wonderful thing. Help wanted signs everywhere, people getting 20% raises, bonuses, etc. And the sheer optimism of everyday people is such a mood lifter.
100% Trump!!! No Bushie or Mittens would even attempt. Mainly bc they don’t believe it will work.
The biggest fear out there among the nattering nabobs of negativity is that it WILL work. Watch and learn, grasshoppers!
Somehow, I just don't see a couple sitting around the kitchen table, thinking, "Wow, we get a couple grand tax credit per child, let's go make some"
As it should be, every time.
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