If the following excerpt is true, the Republicans may want to fix this:
Married? Middle class? Californian? Get ready to be a loser under Trump’s tax plan
BY THE EDITORIAL BOARD
sacramento bee
DECEMBER 20, 2017 05:54 PM
UPDATED 6 HOURS 1 MINUTES AGO
http://www.sacbee.com/opinion/editorials/article190933689.html
For example, heaven help married Californians. The new tax bill includes a marriage penalty by capping at $10,000 the amount of state income and local property taxes that filers can deduct from their federal taxes.
People wed for love, not money, but say you’re an unmarried couple and earn a combined $150,000. Each partner would file separate income tax returns and claim $10,000 each in state and local tax deductions, $20,000 in total. Good for them.
Say you’re a married couple with a couple of kids and a mortgage, earning that same $150,000. You’re making ends meet but not eating at fancy restaurants. Under the tax bill, married couples will be able to deduct no more than $10,000 in state income and local property taxes, half of what an unmarried couple could claim.
It’s one of many ways that Trump’s tax bill, the one that 12 of 14 California House Republicans supported, will harm Californians in the middle.
Dumb question: Why can’t the married couple in that situation file separately instead of jointly? Would it matter, under the new tax code?
They can always vote to change their tax rates. Right!
>>If the following excerpt is true, the Republicans may want to fix this:<<
But it’s not true. Check it out here: http://taxplancalculator.com/calc
The married couple is already paying less that the two singles under current law, and will save even more than the two singles under the new law, primarily due to the increased tax credit for the two kids.