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No tax cuts for working class families? Don't let the democrats and lib media fool you.
https://freerepublic.com/senate/taxcalcs.pdf ^ | Dec 2, 2017 | by Jim Robinson

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.


TOPICS: Constitution/Conservatism; Politics/Elections; Your Opinion/Questions
KEYWORDS: 115th; jimrob; senate; taxcuts; taxshiftpimp; trumptaxcuts; trumptaxplan; workingclass
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To: proxy_user

I didn’t run one for single, but doubt that very much.


21 posted on 12/02/2017 3:09:06 PM PST by Jim Robinson (Resistance to tyrants is obedience to God!)
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To: Jim Robinson
Yes, those would be the effective tax rates. Good work!


22 posted on 12/02/2017 3:09:20 PM PST by familyop ("Welcome to Costco. I love you." --Costco greeter in the movie, "Idiocracy")
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To: WilliamIII

No I don’t admit that. Haven’t run the spread sheets, but the rates are down in each bracket. If you want to give me your numbers, I’ll run it.


23 posted on 12/02/2017 3:12:08 PM PST by Jim Robinson (Resistance to tyrants is obedience to God!)
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To: Jim Robinson

Maybe in california. Not for those of us that already don’t itemize.

And they eliminate the individual mandate!!!


24 posted on 12/02/2017 3:12:33 PM PST by robroys woman (So you're not confused, I'm male.)
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To: Jim Robinson

Fact of the matter is”if you don’t pay taxes, you can’t get a tax cut” !!!


25 posted on 12/02/2017 3:13:11 PM PST by ontap
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To: Jim Robinson

Advice for young couples — try to live “below your means” and not in a MacMansion. And have more kids. “Make do!” Hand-me-down clothes build strength of character. America will be stronger and better if our young people are more like this.


26 posted on 12/02/2017 3:13:18 PM PST by House Atreides (BOYCOTT the NFL, its products and players 100% - PERMANENTLY)
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To: Jim Robinson

You shouldn’t post stuff like that - JR may hear about it. (LOL)

We’re supposed be angry as hell about these tax cuts...at least that’s how it seems.


27 posted on 12/02/2017 3:15:22 PM PST by BobL (I shop at Walmart...I just don't tell anyone)
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To: Jim Robinson

I’ve seen some folks argue that it just ain’t so..
To such a degree that it all becomes confusing.

Me, I’ll trust Trump about it before some self-proclaimed smart people.

Trump didn’t make billions by being stupid about money.


28 posted on 12/02/2017 3:15:38 PM PST by humblegunner
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To: Jim Robinson

I must be crazy.

I just got a check for $13,000 and IRC Feds took $2k.

Ain’t 10%.

And! Whoever that MotherFICA is, I swear I’m gonna accidentally run into him with a shiv about 10-20 times...


29 posted on 12/02/2017 3:15:42 PM PST by Vendome (I've Gotta Be Me - https://www.youtube.com/watch?v=wH-pk2vZG2M)
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To: House Atreides

“Advice for young couples — try to live “below your means” and not in a MacMansion. And have more kids. “Make do!””

What are you, some kind of HERETIC? If they don’t buy the McMansion, idiot, then they won’t be able to write off the taxes and mortgage on it, and thus they will be poorer!!!

(just making a point about how tax policy makes dumb people do stupid things)


30 posted on 12/02/2017 3:19:49 PM PST by BobL (I shop at Walmart...I just don't tell anyone)
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To: Jim Robinson

OK, let’s take an example — husband: 90,000; wife: 70,000. — so 160,000 joint. In California, that’s middle class.

For every dollar above around 70,000, they’re paying a 9.5 percent at state level in California, right?

What’s the difference in federal taxes if they can’t deduct that heavy sum paid to the state?

Remember, they are also deprived of the personal exemptions (totaling 10,400), under the new tax bill.

Hard for me to believe their federal taxes aren’t going up. That’s the whole point of getting rid of the state and local tax deductions - to raise revenue in order to offset the business tax cuts.


31 posted on 12/02/2017 3:20:50 PM PST by WilliamIII
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To: Jim Robinson

I think you’re falling for the GOP talking points that “average” taxpayers will get their taxes reduced. Your examples look simple enough. But the Senate bill is almost 500 pages. God only knows what was added/subtracted at the last minute.

Since individuals pay taxes not “averages” you need to factor in the loss of deductions like long-term medical expenses, SALT, mortgage interest, adoption credits, and others. Throw in the loss of one of these exemptions and your examples fall apart.

One has to ask oneself why a simple tax cut bill needs 500 pages and talks three lawyers to read and understand? The goal was simple rate reductions. Like the Obamacare bill, Congress loaded this thing with crony attachments to satisfy one interest or another.

We should demand more from a party that has full control of the federal government.


32 posted on 12/02/2017 3:21:13 PM PST by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: WilliamIII
Where do these hypothetical famines live? If they live in high tax California, they’re not able to deduct the oppressive taxes they pay to the state. So, a tax increase on their federal returns, right?

If they're earning 60K to 100K, the larger standard deduction probably means they wouldn't have enough to itemize anyway.

33 posted on 12/02/2017 3:23:12 PM PST by CarmichaelPatriot
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To: Oldeconomybuyer

The numbers are what they are. The “Working class” people are getting tax cuts. The democrats are claiming ALL the cuts go to the rich. Well, the rich pay the most in taxes, so they probably will get pretty good tax cuts, but so will the 90 some odd percent of us who aren’t rich.

https://www.stlouisfed.org/~/media/Blog/2017/January/BlogImage_FedIncomeTaxesBracket_011217.jpg?la=en


34 posted on 12/02/2017 3:30:58 PM PST by Jim Robinson (Resistance to tyrants is obedience to God!)
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To: WilliamIII

Within the specified income brackets, they probably are not itemizing.

And not stated: the death of the individual mandate penalty will give a lot of people a major boost.


35 posted on 12/02/2017 3:31:47 PM PST by MrEdd (Caveat Emptor)
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To: proxy_user
It depends entirely on your situation. For example, I am a single retiree with an AGI of $65K. My federal tax will probably double or triple.

AGI=65000
new standard deduction = 12000 (I don't know if they increase it for over 65 or blind)
taxable income = 53000
22% tax bracket, so you pay 4453.5 + (53000-38700)x22%= $7599.50

My current itemized deduction + exemption is greater than the new standard deduction, so I lose out there. The only thing bringing down my taxes is the reduction in rates. I figure my savings would be about $1600 from what my 2017 taxes will be. (I had just spent an hour making an estimate of my fed and state taxes to see if I will get a refund or owe, so I had all my current numbers in a spreadsheet).

36 posted on 12/02/2017 3:36:52 PM PST by KarlInOhio (The Whig Party died when it fled the great fight of its century. Ditto for the Republicans now.)
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To: Oldeconomybuyer
"We should demand more from a party that has full control of the federal government."

The party has control, but the establishment has control of the party. "Everyone" in the party wanted Obamacare gone, but only took three establishment RINOs voting with the dems to torpedo all attempts.

It's a miracle that this bill has advanced as far as it has.

37 posted on 12/02/2017 3:37:06 PM PST by Jim Robinson (Resistance to tyrants is obedience to God!)
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To: Jim Robinson

I currently pay about $1200, so $3-4K is not out of the question.


38 posted on 12/02/2017 3:39:57 PM PST by proxy_user
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To: Jim Robinson

The calc for a single man making $140k in CA with a $400k mortgage and paying alimony really sucks though.

Bigly.


39 posted on 12/02/2017 3:42:20 PM PST by Mariner (War Criminal #18)
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To: ontap
"Fact of the matter is'if you don’t pay taxes, you can’t get a tax cut' !!!" Everyone pays taxes. Those who don't pay income taxes will continue to pay sales taxes, other taxes (property taxes for many) and fees without benefiting from the sales tax deduction or property tax deduction that others take.


40 posted on 12/02/2017 3:43:00 PM PST by familyop ("Welcome to Costco. I love you." --Costco greeter in the movie, "Idiocracy")
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