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To: Paladin2

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.


240 posted on 09/27/2017 7:50:11 PM PDT by stremba
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To: stremba

It doesn’t really make any difference in how complex they make things. The basics still drive the situation. An increase in the marginal rate is always wrong.


242 posted on 09/27/2017 7:52:59 PM PDT by Paladin2 (No spelchk nor wrong word auto substition on mobile dev. Please be intelligent and deal with it....)
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To: stremba

No because you both lose the personal exemption. So the $60,000 family has previously an additional deduction of $8100 for both personal exemptions. Tax income, for simplicity, is then $40,000 for taxes of $4000.

So you are actually paying $320 more.


258 posted on 09/27/2017 9:35:52 PM PDT by Sam Gamgee
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To: stremba

recalculate using $24k itemized deduction ...


261 posted on 09/27/2017 10:05:49 PM PDT by TexasGator
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