Posted on 11/04/2017 6:33:58 PM PDT by Jim Robinson
The House 'Tax Cuts and Jobs Act' has been released. Here are the core elements of the plan.*
(Excerpt) Read more at marketwatch.com ...
You made some good points and then messed it all up with your ending.
What is middle class in one place is poverty level in another and upper middle class is most assuredly MUCH higher than those figures!
ping
I think it’s nuts that the adoption tax credit is being ended. Apart from saving on foster care, it also saves on criminal justice expenses, given that foster children tend to become criminals at far higher rates than adopted ones.
Yeah, unfortunately the calculator is missing some important inputs. For example, a significant chunk of my income is in the form of capital gains... but those are not represented in the calculator. That throws off my tax-owed results pretty badly. And surely, with such a simplistic calculator, there must be other situations like that.
I save $800.00 according to the calculator. My son in law said he put in his and after the child credits (2) he saves $2400.00
$2000 saved. WINNING.
Huh? I thought that was a done deal already. I heard talk earlier this year about Trump taking it off the table right off the bat, telling the IRS to waive the requirement/fine.?
What is middle class in one place is poverty level in another and upper middle class is most assuredly MUCH higher than those figures!
Those are national numbers. State household income medians differ somewhat, but not by multiples. At the top end, 80% of median New Jersey households make less than 141.4K. The equivalent percentile for Mississippi is $81K. Medians for NJ and MS are $71.6K and $39K respectively. The poverty line is typically defined as being somewhere in the teens, percentile-wise. The 20th percentile for NJ is $28.3K. MS's median number is obviously higher than $28.3K, let alone NJ's actual poverty line somewhere in NJ's teen percentiles.
Child credit increased to $1,600.00 from $1,000.00
Each Spouse gets $300.00 credit.
Each non-child dependent gets $300.00 credit.
As credits, these would reduce liability dollar for dollar.
Calculator does not include the latter two credits.
Make sure you back out 401k contribution, medical thru employer, and traditional ira deductions before you key in your income.
What about the personal exemption ($4,500) in addition to the standard exemption we get in 2017?
Lots of people gonna be upset because they envisioned being able to by Porches with the savings - also of note is that in my (and likely 99.9% of Freepers), the 12% rate becomes 8% if you file married...
Repub plan eliminates exemptions completely (they are worth $4050.00/person in 2017). Replaces these with credits and larger std. deduction. New credits are $1600.00 per child <17 and $300.00 for everyone else. Of course, exemptions only reduce taxable income. 4,050.00 exemption is worth $405.00 for someone in 10% bracket and $607.00 for 15% bracket and $1012.00 for someone in 25% bracket. New credits do not entirely make up for lost exemptions. However, doubling of std. deduction and lowering of inc. tax rates at low end will result in lower taxes for most in middle class. Not sure if this plan helps me personally (we have 6 in household and only 1 child) but would result in lower taxes for most.
Thanks Jim. This will be handy. I’ll get out last year’s papers to see how it stacks up.
You’re spot on about the high property taxes.
Somethings gotta be done about those also.
Nice table.. How about singles? I’m married, but I like to see all the data.
No kidding. Another crappy plan.
I prefer that the budget be balanced by eliminating departments/spending rather than strapped to the backs of working people.
Based on my numbers from last year, it would save me about $550.
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