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.
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.
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.
“Since individuals pay taxes not “averages” ..”
?? “average” is a simple math term. It means the majority of tax filers will be their taxes reduced.
“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.”
exactly.
and what about this?
the standard deduction is being not quite doubled [for individuals, it would go from $6,350 to $12,000, and for married joint filers, it raises that deduction from $12,700 to $24,000], but then they are eliminating the individual personal exemptions [of $4,050 per person] for yourself, your spouse and your dependents; thereby, reducing the doubled standard deductions real net worth to $7,950 for singles [a real net increase of $1,600 from existing std deduction] and to $15,900 for joint filers [a real net increase of $3,900 from the current std deduction]. A couple with 2 children will have their $24,000 doubled standard deduction reduced by $16,200 for a real net reduction of $7,800. so they give with one hand but take away with the other. in addition, they are eliminating the extra deduction for those over 65 or blind.
Exclusions and exemptions.
The measure would repeal personal and dependency exemptions (which is $4,050 per individual in 2017), exclusions for employee achievement awards, employer education assistance, qualified tuition programs, dependent care assistance, qualified moving reimbursements, and adoption assistance. Contribution to Coverdell education savings accounts would be barred, but funds in existing accounts could be rolled over to 529 plans.
Deductions.
Certain deductions from gross income as well as itemized deductions would be eliminated. Deductions from gross income set to be axed include the alimony deduction (for divorce or separation agreements entered into after Dec. 31, 2017, student loan interest (although the Senate version would retain this deduction), interest on U.S. savings bonds redeemed for higher education, the moving expense deduction, the deduction for contributions to Archer medical savings accounts, out-of-pocket educator expenses, and expenses of performing artists and certain government officials.
Itemized deductions on the chopping block include the medical expense deduction, state and local income or sales taxes, the casualty and theft loss deduction (except for casualty losses in federally-declared disaster areas), and miscellaneous itemized deductions for tax return preparation and unreimbursed employee business expenses.
Tax credits.
The bill would repeal the credit for the elderly and permanently disabled, the credit for mortgage certificates, and the credit for plug-in electric vehicles. The bill would eliminate the lifetime learning credit by consolidating it into the American opportunity credit. The credit would be available for five years of higher education (instead of four years), but the amount in the fifth year would half the usual maximum (including the amount eligible for the 40 percent refundable portion of the credit).
