Posted on 09/27/2017 11:35:34 AM PDT by Jim Robinson
Congressional Republicans on Wednesday unveiled the framework for their long-awaited tax-reform plan, which simplifies the tax system and cuts rates for businesses -- while attempting to boost household incomes by nearly doubling the standard IRS deduction used by most Americans.
“Today, we move one step closer to fixing our broken tax code," House Speaker Paul Ryan, R-Wis., said. "This is our best opportunity in a generation to deliver real middle-class tax relief, create jobs here at home, and fuel unprecedented economic growth.”
The framework plan calls for increasing the standard deduction to $12,000 for individuals and $24,000 for families, which essentially doubles the amount of personal income that is tax-free.
Congressional Republicans describe the change as creating a larger “zero tax bracket.”
(Excerpt) Read more at foxnews.com ...
We will see
No it doesn’t. When you hit a new tax bracket, only the incremental income is taxed at a higher rate
I know. The discontinuity causes bad decisions.
No it doesn’t. You are always better off taking more income except in a couple of very rare exceptions like you are already withdrawing SS and may cross where it is taxable and not enough to go way past where it’s minimal
Eliminating personal exemptions would KILL US! We are a large family & don’t have thousands of dollars to spare
You’re retarded.
Paying a higher tax rate reduces the incentive to work more. As a marginal decision.
I rarely worked overtime as there was not a commensurate increase in the fringe benefits. The overtime rate was not much above the regular rate, taking fringe benefits into consideration.
Looks like we have to replace McCain, Murkowski, Collins and or two or three other democrat voting senators before much of anything happens.
You’re retarded.
Paying a higher tax rate reduces the incentive to work more. As a marginal decision.
I rarely worked overtime as there was not a commensurate increase in the fringe benefits. The overtime rate was not much above the regular rate, taking fringe benefits into consideration. Any bump in the marginal tax rate would make it a lower pay/hr.
you’re forgetting that the personal exemption would be eliminated, and rolled into the “doubling” of the standard deduction..
property taxes are a big problem and we pay them only with the thought that at least this tax won’t be double taxed by the federales...
It’s a big stinker. I have kids heading to college & now I have to consider redirecting funds to pay for a SIGNIFICANTLY higher tax bill.
My husband and I have 5 kids that still are living with us (2 olders are out of the house)
Eliminating personal exemptions will kill us. Doubling the Standard does little if we don’t have exemptions.
This sucks
I’m sure leftists will be thrilled with big families getting screwed.
In every case it’s either going to be the same rate as now or lower than today. How does that make incremental work worse off than today?
Few go to their death bed wishing they spent more time at work.
A larger step in the marginal tax rate is a bigger disincentive to work more when one is at the cusp of the step increase in tax rate. Mpre, smaller steps in the rate are less of a disincentive at any point in total income.
This is basic economics, no matter your personal interest in more income at the expense of hanging out in your backyard with your dog drinking beer after the dog has taken your on your daily personal training course.
Economics apparently works differently for you. You may not be in the majority in how you view various incentives/disincentives.
https://twitter.com/i/moments/913074910414635009
Why is everyone going apes_it crazy?
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1: Sore loser #NeverTrumper alerts on the screen names going crazy.
2: Left-wing propaganda on top of that. Lie can run around the world before the truth can get its boots on.
Looks like we have to replace McCain, Murkowski, Collins and or two or three other democrat voting senators before much of anything happens.
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Looks like we have our work cut out for us! Who do we go after first?
“Interest rates have been 3.5% or lower for most of the last few years. “
Not according to freddie Mac data.
Not necessarily true. If you have to pay 12% on a lower amount that may well work out to paying less than 10% on a higher amount. Don’t forget that the plan would double the standard deduction.
Just as a numerical example: a family making $60000 per year currently would be able to take a standard deduction of $12000 leaving $48000 in taxable income. At a 10% rate, that would yield a tax liability of $4800. Under the new plan, they would owe 12%, but would be able to deduct $24000. That means they would owe tax on $36,000 at 12%, which equals a tax liability of $4,320. That is a reduction of $480 for that hypothetical family.
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