10% —> 12% is NOT a cut, you retards.
Fewer brackets with higher steps between introduces more dysfunctional decision making. Fewer brackets is a YUGE mistake.
Double the std deduction and recalculate.
It is when combined with the new standard deduction. eg
Today a married couple is making $39,000 of income and does not itemize. They will get $12,700 in standard deductions and $8,100 in personal exemptions, leaving a taxable income of $18,200. They will pay $1,820 in taxes (10%).
Trump's tax bill passes for that same couple. They still make $39,000. They get $24,000 in standard deductions and $8,100 in personal deductions, meaning they can be taxed on $6,900 * .12 = $828, so their tax bill is cut by more than half.
Failing to understand that the 10 to 12 change looks bad is an exemplification of cluelessness.
You do understand they are marginal brackets, not absolute brackets right? Let's say a married couple makes $200k today of taxable income (after all the deductions). Today (and rounding for simple math), the first 18k is taxed at 10%, then the next $60k is taxed at 15%, then the next 80k is taxed at 25% and then the next 47k is taxed at 28% (total fed due = $43k). In the new plan, it would be 12% on the first 78k, and 25% on the next $122k, or $40k in tax due, $3k less than today.
I hope this budget catches fire and flames out like Icarus.
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.