If my wife and I, with two kids are at $120k, will we be considered rich..and taxed even more than I am now? Good god, it doesn’t feel like wealth! I have to study this deal.
No, you’ll be fine.
There’s more to this tax bill than what the propaganda about “middle class tax cuts” says. But its what we are getting.
President Trump is cutting a deal with Corporatist Republican politicians who don’t want to stop spending on the welfare state because the crony capitalists want it to exist.
So I support Trump but I give no credit to the GOP on this because its part of their agenda to tax people other than big corporations and keep on spending money on the bureaucracy and welfare state.
From FReeper dangus:
The major effects on the taxation of wages and salaries for a married couple with two kids are these:
TAX BRACKET CUTS: 15% tax bracket lowered to 12%. 25% tax bracket lowered to 22% up to 1$40,000. 28% tax bracket lowered to 24%.
STANDARD DEDUCTIONS: Almost doubled from $12,700 to $24,000
PERSONAL EXEMPTIONS: eliminated.
CHILD TAX CREDITS: Increased from $1,000 per child to $2,000 per child, but the 2nd $1,000 is only given to the extent that taxes do not go negative. CNN repeats an outrageous lie that the elimination of the Standard Deduction means families with more than 2 kids can face tax hikes; that ignores the increased child credits.
EFFECT ON A FAMILY OF 4:
WORKING CLASS: making $50,000. After standard deduction income drops from $37,300 to $26,000, but taxable income (after exemptions) increases from $16,200 to $26,000. Taxes before credits increase from $2,237 to $2,749. But credits mean that the actual taxes after credits decline from $237 to zero. In fact, the family could make a lot more and still pay zero taxes; such families could save thousands.
MIDDLE CLASS: making $100,000. After standard deduction income drops from $87,300 to $76,000. The loss of exemptions raise taxable income from $71,100 to $76,000. Decreases in tax rates lower the base taxes from $9,737 to $8,749. With credits, this family saves about $3,000: Its taxes owed drop from $7,737 to $4,749.
TELL YOUR LIBERAL FRIENDS: These two groups get a sharper cut in taxes than the cut in the corporate-profits tax rate!
UPPER MIDDLE CLASS: making $250,000. After standard deduction income drops from $237,300 to $221,000. The loss of exemptions raise taxable income from $221,100 to $226,000. Decreases in tax rates lower the base taxes from $48,773 to $39,263. With credits, this family saves about $11,000: Its taxes owed drop from $46,773 to $35,263.
WHAT ABOUT IF CONGRESS FAILS TO PASS CONTINUATION OF TAX CUTS?
From what I can see, it looks like the the tax rates go up, but the credits aren’t repealed. This means the working class STILL pay zero taxes; the middle class keeps a little less than half of its tax cut, and the upper-middle class still gets a slight tax cut.
TELL YOUR LIBERAL FRIENDS: Even if individual taxes go back up, the working class STILL pays no taxes, the middle class STILL gets a (smaller) tax cut, and the tax-”cut” package results in MORE revenue after 2027, not less, than if the Senate fails to pass the tax cuts.
THERE ARE OTHER EFFECTS
I’m trying to write about on whom the burden of taxation falls to dispel the myth that the Senate tax plan is unfair to working Americans. I don’t get into the effect of the corporate tax cut, but taxes are cut on all working and middle-class families more than on corporations. (That’s not even mentioning that fact that lower taxes on corporations means more profit to pass on to stock-holders, which means more money collected in personal taxes.)
I also don’t get into various tax cuts not likely to effect individuals in any given year, such as the expansion of the inheritance tax exemption. But this is a tax cut the 1% will NOT be getting.
The loss of exemptions for state and local sales taxes will not thrill your liberal friends who dwell in liberal states. But those will effect the poor they claim to be so concerned with far less... except for a few examples where liberal states are totally screwing the poor (like Virginia).
The repeal of the individual healthcare mandate won’t affect many people, except small business owners and independent contractors.
Not even close to being “wealthy” enough to hurt you.
You have to make less than $70K to get a tax hike, so you’re good.